Privacy concerns in E-commerce: A taxonomy and a future research agenda

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RESEARCH PAPER

Privacy concerns in E-commerce: A taxonomy and a future research agenda Ruwan Bandara 1

&

Mario Fernando 1

&

Shahriar Akter 2

Received: 10 December 2018 / Accepted: 24 September 2019 # Institute of Applied Informatics at University of Leipzig 2019

Abstract Safeguarding consumer privacy is a key challenge for the growth of e-commerce. The dramatic technological changes advanced by online platforms, big data, artificial intelligence, virtual reality, virtual assistants, and blockchain technology are transforming the way we shop online. This paradigm shift in e-commerce has only intensified the perplexities of privacy issues. Corresponding to the growing concerns of privacy in practice, research in this area has surged during the last two decades. The aim of this paper is to review the current state of consumer privacy research in business to consumer e-commerce and thereby understand what has been studied, what is omitted, and what potential research areas have emerged in the course of transformational technological changes. We conducted a systematic review of behavioral studies published on analyzing privacy concerns at the individual level during the last 20 years. We methodically analyzed the selected literature using the thematic analysis technique. The results revealed eight main themes. We present a taxonomy of consumer privacy concerns and a research agenda that could lead to a more cohesive and comprehensive understanding of privacy dynamics in e-commerce. Keywords Privacy concerns . E-commerce . Thematic analysis . Taxonomy . Research agenda JEL classification L81 . M310

Introduction E-commerce has emerged as the alternate channel of bricksand-mortar buying and selling and has become a multi-billion dollar industry. E-commerce retail sales in the U.S. reached $336 billion in 2017 (Statista 2018a) and in 2017 nearly 1.66 billion people globally purchased goods online (Statista 2018b). The widespread use of the internet, growth of mobile Responsible Editor: Maria Madlberger * Ruwan Bandara [email protected] Mario Fernando [email protected] Shahriar Akter [email protected] 1

Faculty of Business, University of Wollongong, Northfields Ave, Wollongong 2522, Australia

2

Sydney Business School, University of Wollongong, Northfields Ave, Wollongong 2522, Australia

devices and applications, and the integration of e-commerce and social media have largely promoted e-commerce growth (Chen et al. 2017; Molinillo et al. 2018; Williams 2018). For instance, worldwide spending on mobile applications rose from $4 billion in 2009 to $35 billion in 2015 (Moorhouse et al. 2018). Revenue from social commerce is expected to reach $80 billion by 2020 (Sharma et al. 2019). Traditionally e-commerce involves conducting of business transactions by means of telecommunications networks (Zhang et al. 2013). The advent of new subsets of e-commerce such as mobile- and wearable-commerce has introduced ubiquity, unison, universality, and immediacy into the traditional transaction processes (Gu et al. 2016; Zhan