The role of perceived information practices on consumers' intention to authorise secondary use of personal data

Abstract

We are living in an era where data lead to opportunities, especially customer data. According to privacy laws, however, without customers' authorisation, organisations face many limitations in using identifiable information for secondary purposes. Consequently, organisations are missing out on many potential business opportunities to capitalise on customer data. Privacy concerns have become the biggest roadblock to gain customer consent because of the potential risks associated with the use of personal information. This situation underscores the importance of devising effective information practices and strategies in dealing with the use of customer data. Privacy literature suggests that information practices may influence individuals' intentions to participate in situations requiring the collection and use of personal data. Yet, existing research has not systematically analysed the role of these strategies in influencing intention. Also, previous studies focus primarily on the disclosure of personal data. Issues surrounding 'authorisation of personal data for secondary use' remain unexplored. The purpose of our study is to examine the role of information practices on intention to authorise secondary use of personal data. The results show that privacy concerns and trusting beliefs significantly affect individual perceptions of information practices. Perception of information practices in turn exerts significant effect on intention to authorise secondary use of personal data. Both theoretical and managerial implications of the results are discussed