An investigation of the relationships among domain-specific innovativeness, overall perceived risk and online purchase behaviour

This study examines the relationships among domain-specific innovativeness, overall perceived risk and online purchase behaviour, by first decomposing overall perceived risk into four dimensions of privacy, time, performance and financial risk. Using structural equation modelling (SEM), this study demonstrates that privacy, time, performance and financial risk imbedded within overall perceived risk are inversely related to online purchase behaviour. The findings from this study support that privacy risk is the most significant type of perceived risk when purchasing online. Domain-specific innovativeness is found to directly influence online purchase behaviour. In addition, overall perceived risk has a partial mediation effect on the relationship between domain-specific innovativeness and online purchase behaviour. Lastly, this study provides empirical evidence for the positive effect of internet usage on online purchase behaviour.