An empirical examination of consumer adoption of Internet of Things services: Network externalities and concern for information privacy perspectives

The Internet of Things (IoT) is emerging as a significant development in information technology, with the potential to increase convenience and efficiency in daily life. While the number of IoT service users has increased dramatically, little is understood about what motivates the continued use of such services. The primary objective of this study is to develop and refine a conceptual framework from the perspective of network externalities and privacy to provide a theoretical understanding of the motivations that drive continued use of IoT services. The proposed model was empirically evaluated using survey data collected from 508 users concerning their perceptions of IoT services. The results indicate network externalities play a significant role in influencing consumers' perception of usage benefits and thus adoption, whereas privacy concerns have a relatively weak effect on adoption. Implications for IS researchers and practice are discussed.