Effects of Privacy Policy and Government Regulation on Trust of Consumers in Saudi Arabia: An Empirical Study

Alharbi Nesreen Nasser A. and Yanhui Li
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Alharbi Nesreen Nasser A.: School of Information Management, Central China Normal University, Wuhan, China
Yanhui Li: School of Information Management, Central China Normal University, Wuhan, China

International Journal of Innovation and Economic Development, 2019, vol. 5, issue 4, 7-24

Abstract: The research aimed to analyze the influence of privacy policy and government regulation on privacy risk concerns and trust. In other words, this paper attempted to highlight the importance of privacy policy and government regulations, which are two important aspects related to user’s privacy rights. Data were collected through an online questionnaire to test the relationships between each FTC category in online privacy statements of websites/Government regulation and its effect on trust/privacy concerns and relationships. Two hundred sixty-eight respondents participated in the online survey. Results of the study indicate that the privacy policy has a positive impact on trust, whereas privacy risk concerns have a negative impact on trust. A clear and transparent privacy policy helps organizations to establish good relationships with consumers. Additionally, the privacy policy has a negative impact on privacy risk concerns. A strong and powerful privacy policy will significantly improve users’ conservative attitudes about information sharing and privacy disclosure risks. Finally, government regulation has a positive impact on trust and a negative impact on privacy risk concerns. Government regulations such as disclosure, sharing, and use of personal information must be enforced to increase the willingness to use users’ information, thereby enhancing users’ trust in the relevant privacy policy protection laws. Clear and effective laws and regulations reduce users’ fear of privacy policy; that is, the quality of the law will effectively motivate users to provide personal information. The findings of the research imply that there is a high level of concern among the citizens linked to their privacy risk, indicating people do not trust e-government sufficiently. Taking into consideration weak spots related to e-government policies a cybersecurity plan should be implemented. Besides that, consumers’ trust related to privacy policy should be increased. This can be done by improving the standards for a privacy policy.

Keywords: Privacy policy; Privacy risk; Government regulation; Citizen’s participation; Consumers in Saudi Arabia (search for similar items in EconPapers)
JEL-codes: M00 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:mgs:ijoied:v:5:y:2019:i:4:p:7-24

DOI: 10.18775/ijied.1849-7551-7020.2015.54.2001

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