An Empirical Study of Home IoT Services in South Korea: The Moderating Effect of the Usage Experience

Abstract

ABSTRACTThis article examines the responses of users to home Internet of Things (IoT) services in South Korea, which is taking progressive steps in the field of IoT. It is important to investigate the user’s response because home IoT users are the core users of the IoT business. To this end, the research model includes two trust constructs — “trust in the service provider” and “institutional trust”; two risk constructs — “perceived security risk” and “perceived privacy risk”; and “perceived benefit” construct. This study has two main objectives: (1) to establish the functional relationship among the five constructs listed above; (2) to examine the moderating role of home IoT usage experience in these relationships. The study first reviews the literature on home IoT services and describes the Korean situation. Data were collected from residents living in a smart apartment complex. They were made aware of not only the benefits of home IoT but also the security and privacy risks before they moved into their new homes. The research model was empirically analyzed with structural equation modeling (SEM) using Amos 22.0. The results show that (1) “trust in the service provider” negatively influences “perceived security risk” and “perceived privacy risk” while “institutional trust” does not have a significant influence on them, (2) “perceived security risk” and “perceived privacy risk” negatively influence “perceived benefit,” and (3) “trust in service provider” does not directly influence “perceived benefit” while “institutional trust” has a positive and direct influence on it. In addition, there is a significant moderating effect of home IoT usage experience on some paths. Finally, the study’s findings and limitations are discussed, and potential avenues for future research are suggested.