The intangibility of E-services: effects on artificiality, perceived risk, and adoption

This research focuses on perceptions and reactions to the intangible nature of newly digitized transaction processing systems. For many consumers, the intangibility of information system-based processes generates beliefs that they are fake, non-genuine, artificial and therefore inherently risky to use. This perceived artificiality phenomenon was shown to increase risk concerns, which in-turn inhibited system adoption. Investigating reactions to an e-service replacement of a paper process enabled testing of this proposed conceptual causal chain. Results suggest that the inherent intangibility of e-services creates concerns measured in raised perceived artificiality and perceived risk. Interestingly, mental rather than physical intangibility increased artificiality concerns. Perceived artificiality directly increased risk concerns and indirectly affected system evaluation and adoption, which were primarily affected by system perceived risk. This exploratory research suggests a research model that provides a first step towards understanding the effect of information systems?? inherent intangibility on system evaluation and adoption, and may be utilized when testing riskreducing system enhancements.