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Trust, Perceived Risk, and Trusting Behavior in Internet Banking  

Kim, Kyung-Kyu (Graduate School of Information Yonsei University)
Prabhakar, Bipin (Kelley School of Business Indiana University)
Park, Sung-Kook (Graduate School of Information Yonsei University)
Publication Information
Asia pacific journal of information systems / v.19, no.3, 2009 , pp. 1-23 More about this Journal
Abstract
In information systems, "trust" and "risk" have been explored by a few trust-related research studies before, but as two separate issues. The way in which these studies have been designed, however, does not help clarify the relationship between trust and risk since they are studied as unconnected determinants of trusting behavior in electronic commerce. As such, this research attempts to examine and specify the relationships among the core constructs surrounding the issue of trust such as risk and trusting behavior. The context of Internet banking adoption is used to develop a conceptual model that incorporates the direct effects of trust and perceived risk on trusting behavior as well as the mediation of the relationship between trust and trusting behavior by perceived risk. The findings show that perceived risk mediates the relationship between trust and trusting behavior. Specifically, trust in the Internet as a banking medium significantly influences the adoption of Internet banking both directly and indirectly through perceived risk of Internet banking. Trust that the bank will not take advantage of consumers significantly influences the trusting behavior through perceived risk of Internet banking. This study, thus, extends research on trust in e-commerce by simultaneously examining the influence of trust and perceived risk on e-commerce adoption.
Keywords
Trust; Perceived Risk; Trusting Behavior; Electronic Commerce; Internet Banking;
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