TY - JOUR
T1 - How privacy practices affect customer commitment in the sharing economy
T2 - A study of Airbnb through an institutional perspective
AU - Chen, Shijiao (Joseph)
AU - Tamilmani, Kuttimani
AU - Tran, Khai Trieu
AU - Waseem, Donia
AU - Weerakkody, Vishanth
PY - 2022/11
Y1 - 2022/11
N2 - Privacy is an emerging issue for home-sharing platforms such as Airbnb. Home-sharing providers (business customers) are subject to both digital privacy risks (e.g., data breaches and unauthorized data access) and physical privacy risks (e.g., property damage and invasion of their personal space). Therefore, platforms need to strengthen their institutions of privacy management to protect the interests of providers and maintain their commitment. By applying the micro-level psychological aspect of institutional theory, our research investigates how providers decide their level of commitment to a platform by evaluating the institutions of the platform's privacy management. Our survey recruited 380 Airbnb providers from the Prolific panel. Structural equation modelling analysis shows that both physical and digital privacy practices strengthen providers' legitimacy judgement of the platform's privacy management and subsequently increase their commitment to the platform. Our theoretical contribution lies in revealing the effects of physical and digital privacy practices on B2B relationships from an institutional perspective. Our research is among the first to provide an integrative framework illustrating providers' psychological process of legitimacy judgement. It also has practical implications for sharing economy platforms to manage privacy.
AB - Privacy is an emerging issue for home-sharing platforms such as Airbnb. Home-sharing providers (business customers) are subject to both digital privacy risks (e.g., data breaches and unauthorized data access) and physical privacy risks (e.g., property damage and invasion of their personal space). Therefore, platforms need to strengthen their institutions of privacy management to protect the interests of providers and maintain their commitment. By applying the micro-level psychological aspect of institutional theory, our research investigates how providers decide their level of commitment to a platform by evaluating the institutions of the platform's privacy management. Our survey recruited 380 Airbnb providers from the Prolific panel. Structural equation modelling analysis shows that both physical and digital privacy practices strengthen providers' legitimacy judgement of the platform's privacy management and subsequently increase their commitment to the platform. Our theoretical contribution lies in revealing the effects of physical and digital privacy practices on B2B relationships from an institutional perspective. Our research is among the first to provide an integrative framework illustrating providers' psychological process of legitimacy judgement. It also has practical implications for sharing economy platforms to manage privacy.
KW - Sharing economy
KW - Institutions
KW - Legitimacy judgement
KW - Privacy
KW - Business-to-business marketing
UR - http://www.scopus.com/inward/record.url?scp=85139637362&partnerID=8YFLogxK
U2 - 10.1016/j.indmarman.2022.08.020
DO - 10.1016/j.indmarman.2022.08.020
M3 - Article
SN - 0019-8501
VL - 107
SP - 161
EP - 175
JO - Industrial Marketing Management
JF - Industrial Marketing Management
ER -