A unified framework for exploring the determinants of online social networks (OSNs) on institutional investors’ capital market investment decision

Abstract

Online social networks (OSNs) are effusively emerging information dissemination platforms for capital market investors' as in other settings. The insinuation of OSNs for institutional investors' investment decisions in the capital market cannot be eluded in today's world. This study aims to determine the factors that influence institutional investors' capital market investing decisions and the level to which each factor influences their decision. It presents a comprehensive framework that incorporates TAM and valence frameworks while also analyzing institutional theory, resource-based view, FASB framework, and transaction cost theory. A mixed-method approach is proposed, consisting of expert interviews and a field survey. An online structured questionnaire was used to perform a field survey, and 285 data points were obtained from capital market institutional investors in Bangladesh. The data was analyzed using Structural Equation Modeling (SEM). The suggested comprehensive model outperforms previous models. Proposed factors (e.g., institutional pressure and cost-benefit dimension), as well as perceived usefulness, are strong predictors of intention to use. Indirect drivers of intention to use include another hypothesized construct (e.g., situational context) and perceived ease of use. The decision to engage in the capital market is highly influenced by the intention to use OSNs. It is worth noting that the predicted relationship between situational context and perceived usefulness, as well as the relationship between perceived usefulness and perceived ease of use, are both highly significant. Stimulatingly, proposed moderators, namely organizational IS capability, significantly moderates the different relationships of the unified model. Surprisingly, perceived risk has not to impact on OSNs adoption. Theoretical and practical implications, as well as other discussions, are also presented.