Understanding uncertainty dimensions and Internet stock trading service in China from a social cognitive perspective

Abstract

Purpose

This paper investigates the effects of different uncertainties on Internet stock trading (IST) adoption intentions of individual investors in China and aims to determine the interaction effects of trust and perceived benefits in the relationship between uncertainty dimensions and IST adoption intentions.

Design/methodology/approach

Using a structured questionnaire, a survey of 353 experienced stock traders was conducted in China. The proposed uncertainty-trust-perceived benefits framework was examined through structural equation modelling using Smart PLS 3.0.

Findings

The study found significant negative effects of perceived technology uncertainty, perceived regulatory uncertainty and perceived information asymmetry on the IST adoption intentions of individual investors. Perceived service intangibility was found to have only insignificant effects on IST adoption intentions. In terms of interaction results, trust significantly moderates the relationship between IST adoption intentions and, respectively, perceived technology uncertainty and perceived information asymmetry. Similarly, perceived benefits significantly moderate the relationship between intentions to adopt IST and both perceived technology uncertainty and perceived regulatory uncertainty.

Practical implications

The regulators for IST development in China could utilise the results of this study as guidelines for strategies to increase the use of IST among existing and potential investors.

Originality/value

Using social cognitive theory, this research investigates the effects of various uncertainties on IST adoption intentions of individual investors in China; these effects have not been explored by previous literature. Furthermore, few studies other than this one have investigated the interaction effects of factors which counteract the negative effect of other factors.

Citation

Khan, S.U., Liu, X.-d., Liu, C., Khan, I.U. and Hameed, Z. (2021), "Understanding uncertainty dimensions and Internet stock trading service in China from a social cognitive perspective", Information Technology & People, Vol. 34 No. 2, pp. 812-834. https://doi.org/10.1108/ITP-02-2019-0062