Effects of strategic value orientation on personal data privacy, value in use and organizational reputation

Abstract

PurposeThis study assesses whether the strategic orientation of financial institutions to provide value to customers influences the dimensions of personal data privacy perceived by consumers of banking services. We also analysed whether these dimensions directly influence the value in use and, indirectly, the reputation of financial institutions.Design/methodology/approachBased on the literature, a model was developed to verify the proposed relationships. To test the model, we collected data via an online questionnaire from 2,422 banking customers, with analysis using structural equation modelling with partial least squares estimation.FindingsThe results suggest that strategic value orientation tends to have a direct positive influence on the constructs knowledge, control, willingness to value privacy and trust in sharing personal information and a direct negative influence on the personal data privacy experience. Three dimensions of personal data privacy (knowledge, willingness to value privacy and trust in sharing personal information) tend to have a direct positive influence on value in use. The results showed that the dimensions of personal data privacy experience and control had a significant and negative impact on the value in use construct. Another finding is the positive influence of value in use on organizational reputation. Investing in strategic value orientation can generate consumer perceptions of personal data privacy, which is reflected in the value in use and reputation of banks.Originality/valueThis study is theoretically original because it brings up the organizational reputation of financial institutions based on the strategic orientation to offer value to customers, personal data privacy and the value in use of banking services. The study of these relationships is unprecedented in the literature.