The Ability of Risk Value Perception and Trust in Building Continuance Intention

Abstract

E-commerce transactions have expanded rapidly in Indonesia, making e-commerce platforms increasingly important for all stakeholders involved in the digital marketplace. This study aims to examine the roles of perceived risk dimensions and trust in shaping consumers' continuance intention to use e-commerce platforms. The study surveyed 307 Indonesian consumers, both male and female, aged 17–60 years, who had purchased products from Shopee Mall at least once. Respondents were selected using a convenience sampling technique. The data were analysed using Structural Equation Modelling (SEM) with AMOS 28. The findings demonstrate that the interplay between perceived risk and trust contributes to the formation of continuance intention, regardless of whether perceived risk acts as the antecedent and trust as the mediator, or vice versa. The findings from Model 1 reveal that all three dimensions of perceived risk have significant negative effects on trust. In contrast, Model 2 demonstrates that trust has significant negative effects on the three perceived risk dimensions. Despite these differences in causal direction, both models consistently show that trust positively influences continuance intention, whereas functional risk and time risk exert significant negative effects on continuance intention. In addition, both models indicate that financial risk has a negative but statistically insignificant effect on continuance intention. Furthermore, Model 2 explains continuance intention more strongly than Model 1. These findings suggest that managers should prioritize marketing strategies aimed at strengthening consumers' trust rather than focusing primarily on reducing perceived transaction risk, as trust appears to play a more influential role in encouraging continued use of e-commerce platforms.