Examining the Formation of Individual's Privacy Concerns: Toward an Integrative View

Numerous public opinion polls reveal that individuals are quite concerned about threats to their information privacy. However, the current understanding of privacy that emerges is fragmented and usually discipline-dependent. A systematic understanding of individuals’ privacy concerns is of increasing importance as information technologies increasingly expand the ability for organizations to store, process, and exploit personal data. Drawing on information boundary theory, we developed an integrative model suggesting that privacy concerns form because of an individual’s disposition to privacy or situational cues that enable one person to assess the consequences of information disclosure. Furthermore, a cognitive process, comprising perceived privacy risk, privacy control and privacy intrusion is proposed to shape an individual’s privacy concerns toward a specific Web site’s privacy practices. We empirically tested the research model through a survey (n=823) that was administered to users of four different types of web sites: 1) electronic commerce sites, 2) social networking sites, 3) financial sites, and 4) healthcare sites. The study reported here is novel to the extent that existing empirical research has not examined this complex set of privacy issues. Implications for theory and practice are discussed, and suggestions for future research along the directions of this study are provided.