Exploring trust transfer between internet enterprises and their affiliated internet-only banks

Abstract

PurposeWith the development of information technology, there is a growing trend for internet enterprises in China to launch internet-only banks. This paper aims to explore how the brand trust in an internet enterprise is transferred to the initial trust in its affiliated internet-only bank and how such transfer affects adoption behavior of potential internet-only banking users.Design/methodology/approachData were obtained from online questionnaires via a well-known Chinese survey website and a popular Chinese social platform, which yielded 486 usable responses for the analysis. Partial least squares was used for testing hypotheses.FindingsThe results show that brand trust in the internet enterprise increases initial trust in its affiliated internet-only bank. This, in turn, enhances the adoption of internet-only banking. More importantly, these results show that brand trust in the internet enterprise transfers to initial trust in internet-only banking through performance expectancy and perceived risk. Further, the need for interaction moderates the relationship between brand trust and performance expectancy as well as the relationship between brand trust and perceived risk.Originality/valueThis study provides new insights into the mechanism by which trust is transferred between two affiliated business entities. The results of the study suggest several useful managerial implications for managing the internet-only banks.