Business and Society Measuring the Impact of Privacy Concerns, Perceived Risk and Trust on the Continuance Intention of Facebook Users by means of PLS-SEM Dilek Taşkın1 and Çağatan Taşkın2 1 Bursa Uludağ University, Bursa, Turkey 2 Bursa Uludağ University, Bursa, Turkey dilektaskin@uludag.edu.tr ctaskin@uludag.edu.tr Abstract. Facebook became one of the most popular ways of online social inter- action. Many social networking sites like Facebook focus on their market, in other words, users. That’s why, antecedents of continuance intention of Facebook users should be investigated in order to develop more efficient marketing strate- gies [1]. According to the literature, privacy concerns, perceived risk and trust are the most important antecedents of continuance intention. The aim of this study is to examine the influence of privacy concerns, perceived risk and trust on the continuance intention of Facebook users in Bursa city of Turkey. Data were collected via an online questionnaire. A total of 241 questionnaires were used for the analysis. According to the results, privacy concerns antecedent was found to have a statistically negative significant impact on trust and positive significant impact on perceived risk. Trust antecedent was also found to have a statistically significant positive impact on continuance intention of Facebook users. Keywords: Privacy concerns, perceived risk, trust, continuance intention, Face- book, Bursa, Turkey. 1 Introduction In recent years, social networks especially Facebook attracted a great number of people all over the world [2]. Facebook became one of the most popular ways of online social interaction. Many social networking sites like Facebook focus on their users. The users of social networks are so important for the long-term success of them [3]. That’s why antecedents of continuance intention of Facebook users should be investigated in order to develop more efficient marketing strategies [1]. In the literature, there are studies that aim to understand the relations among continu- ance intention and its antecedents for social media platforms. According to Wang et al. (2016), trust and risk were found to have significant effects on individual behavior to- ward social media platforms but that trust had a stronger effect [4]. Another study com- 351 Business and Society 2 pared two social media platforms (Facebook and LinkedIn) to understand factors af- fecting users’ trust on social media platforms. According to the findings of the study, it was found that users’ trust on social media platforms was mainly influenced by effort expectancy, social influence and perceived risk. Besides, it was found that trust had a significant impact on continuance intention [2]. In Tan et al. (2012)’s study, it was aimed to understand the impact of users’ privacy concerns on their acceptance of social media platforms [5]. There is also another study that proposed a research model to in- vestigate individuals’ social media platform usage facilitators and inhibitors from the perspective of privacy concerns [6]. In addition, there are various researches that aim to understand the antecedents of continuance intention in photo-sharing context [7] [8] [9] [10]. According to the literature, privacy concerns, perceived risk and trust are the most important antecedents of continuance intention. Especially, privacy concerns is a very current topic for the social media market. Thus, it is aimed to examine the influ- ence of privacy concerns, perceived risk and trust on the continuance intention of Fa- cebook users in this study. 2 Methodology 2.1 Research Sample and Method The research was conducted on Facebook users in Bursa city of Turkey. Data were collected via an online questionnaire. Convenience sampling method was used in the research. Data were collected in the months of June, July and August of 2018. 275 questionnaires were collected from respondents. 34 of them were excluded as they were not complete based on the initial screening. A total of 241 questionnaires were used for the analysis. The antecedents of the model such as privacy concerns, perceived risk, trust, effort expectancy, social influence and continuance intention were measured by the items based on the related literature [2] [3] [11]. Smart PLS 3.0 and IBM SPSS 21.0 were used in order to analyze the data. PLS-SEM was used to test the influence of privacy concerns, perceived risk and trust on the continuance intention of Facebook users. The popularity of structural equation modeling (SEM) has grown out of the need to test complete theories and concepts. Much of SEM’s success can be attributed to the method’s ability to evaluate the measurement of latent variables, while also testing re- lationships between latent variables. Although the initial application of this method em- braced a covariance-based approach (CB-SEM), researchers also have the option of choosing the variance-based partial least squares technique (PLS-SEM). While CB- SEM is the more popular method, PLS-SEM has recently received considerable atten- tion in a variety of disciplines including marketing, strategic management, management information systems, operations management, and accounting. Much of the increased usage of PLS-SEM can be credited to the method’s ability to handle problematic mod- eling issues that routinely occur in the social sciences such as unusual data characteris- tics (e.g. nonnormal data) and highly complex models [12]. 352 Business and Society 3 2.2 Profile of Respondents Demographic characteristics of the respondents were given in Table 1. As seen, 110 of the respondents were male and 131 of the respondents were female. Most of the re- spondents (44.4%) were between 21-30 ages, 34.0% of the respondents were between 31-40 ages and 13.7% of the respondents were between 41-50 ages. Most of the re- spondents had an undergraduate degree or were more educated (92.6%). Single Face- book users were slightly more than married users. Most of the respondents had a Face- book experience for 4 and more years. 56.4% of the respondents spent 60 minutes or less time on Facebook, while 43.6% spent more than 60 minutes time on Facebook per day. Table 1. Profile of Respondents. Demographics Frequency % Demographics Frequency % Gender Education Male 110 45,6 Primary school 3 1,2 Female 131 54,4 High school 15 6,2 Age Undergraduate 106 44,1 <=20 2 0,8 MSc 97 40,2 21-30 107 44,4 PhD 20 8,3 31-40 82 34.0 Marital Status 41-50 33 13,7 Single 133 55,2 >50 17 7,1 Married 108 44,8 Time spent on Facebook expe- Facebook per rience day 60 minutes or 136 56,4 <1 year 5 2,1 less More than 60 105 43,6 1-2 years 2 0,8 minutes 2-3 years 8 3,3 3-4 years 9 3,7 4 years and more 217 90,1 2.3 Research Model and Hypothesis The research model is shown in Fig. 1. As it can be seen, the research model includes the variables, which are; “effort expectancy”, “social influence”, “privacy concerns”, “perceived risk” “trust” and “continuance intention” and the relationships among them. 353 Business and Society 4 Fig. 1. Research Model The hypotheses of the research are: H1: “Effort expectancy” positively influences “trust”. H2: “Social influence” positively influences “trust”. H3: “Effort expectancy” positively influences “continuance intention”. H4: “Social influence” positively influences “continuance intention”. H5:“Privacy concerns” negatively influences “trust“. H6:“Perceived risk” negatively influences “trust“. H7:“Perceived risk” negatively influences “continuance intention“. H8:“Privacy concerns” positively influences “perceived risk“. H9:“Trust” positively influences “continuance intention“. 2.4 Construct Reliability and Validity Table 2 shows the results of construct reliability and validity. The AVE (Average Var- iance Extracted) values of the structure must be 0,50 or more for the validity of latent structures [13]. Results show that the AVE values for effort expectancy, social influ- ence, trust, continuance intention, privacy concerns and perceived risk are 0.60, 0.55, 0.63, 0.74, 0.76 and 0.56, respectively. As the result of the analysis carried out with Smart PLS and PLS estimation method, the composite reliability value is given. Com- posite Reliability value should be 0.70 or above [14]. 354 Business and Society 5 Table 2. Construct Reliability and Validity Construct Cronbach’s Alpha Rho’A CR AVE Effort Expectancy 0.84 0.89 0.88 0.60 Social Influence 0.80 0.91 0.85 0.55 Trust 0.80 0.85 0.87 0.63 Continuance Inten- 0.88 0.89 0.91 0.74 tion Privacy Concerns 0.89 0.90 0.92 0.76 Perceived Risk 0.77 0.94 0.83 0.56 2.5 Testing the Research Model by Using PLS Table 3 shows the results of hypothesis tests and structural relationships. The path co- efficient of trust on continuance intention is 0.44, the path coefficient of social influence on trust is 0.41 and the path coefficient of privacy concerns on trust is -0.27. On the other hand, the path coefficients of perceived risk on trust and continuance intention are -0.09 and -0.007, respectively. Table 3. Results of Hypothesis Tests and Structural Relationships Hypothesis Path Coefficient t-statistica P Values Result H1 0.28 2.97*** 0.003 Supported H2 0.41 6.02*** 0.000 Supported H3 0.35 4.05*** 0.000 Supported H4 0.22 2.67*** 0.008 Supported H5 -0.27 2.86*** 0.004 Supported H6 -0.09 0.65 0.51 Not supported H7 -0.007 0.08 0.93 Not supported H8 0.34 2.17** 0.03 Supported H9 0.44 3.88*** 0.000 Supported According to the results of PLS modeling, all of the hypotheses were supported except hypothesis 6 and 7. Privacy concerns antecedent was found to have a statistically neg- ative significant impact on trust and positive significant impact on perceived risk. Trust antecedent was also found to have a statistically significant positive impact on contin- uance intention of Facebook users. In addition, effort expectancy and social influence antecedents were found to have significant positive impacts on both trust and continu- ance intention. As seen from Table 3, the highest path coefficient is 0.44 that belongs to the path of trust-continuance intention. This means that if Facebook wants its users to be loyal then it must build trust. The answer of “how to build trust” question is also 355 Business and Society 6 seen from the path coefficients. Facebook must focus on the dimensions of social in- fluence, effort expectancy and privacy concerns in order to build trust, respectively. 3 Conclusion This study helps draw useful implications for the managers of Facebook and social networking services as well. It is important for practitioners to know the impacts of antecedents on continuance intention to develop more efficient strategies. In this re- search, both effort expectancy and social influence significantly affected trust anteced- ent. According to the findings, privacy concerns was found to be one of the important antecedents of continuance intention. Privacy concerns negatively influenced trust an- tecedent. 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