The effect of the perceived risk on the adoption of the sharing economy in the tourism industry: The case of Airbnb

Abstract

Smart tourism and the sharing economy within it are transforming human lives and are considered a huge innovation in the industry. This change inevitably creates huge resistance, which did not obtain much attention. Thus, this study focuses on sharing economy's risk aspects, which have become a social issue. It investigates how risks affect the development and diffusion of the sharing economy, especially in Airbnb. This study adopts extended model of goal-directed behavior and depicts the decision-making process of potential Airbnb users to analyze risk effect. Results of structural equation modeling applied to 300 potential customers indicate that privacy and financial risks negatively affect the intention to use the sharing economy. However, physical and performance risks are positively related with behavioral intention or desire. This risk paradox can be explained by the disruptive innovation of the sharing economy and the characteristics of risk engagement in tourism. Implications for research and practice are discussed along with the findings of the study.