E-wallet: The Mediating Effect of Innovation Characteristics on the Relationship between Network Externalities, Attitude and Brand Image
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Keywords:E-Wallet, Network Externalities, DOI, Brand Image, Attitudes
– Technology development has brought about an innovation known as e-wallet that simplifies how financial transactions operate nowadays. This paper aimed to explore the effects of network externalities (NE) by incorporating innovation characteristics from diffusion of innovation (DOI) theory as a mediating factor in analyzing the parallel relationship of NE with attitudes and the serial relationship of NE with brand image. The data was analyzed using the PLS-SEM technique. The findings concluded that NE significantly and positively influences the attitudes and brand image of e-wallet. Furthermore, the results show that relative advantage, compatibility, and perceived ease of use derived from DOI all positively and significantly mediate the relationship of NE with attitudes and brand image of the e-wallet. Among these, compatibility is the most impactful factor in mediating all the defined relationships. However, observability and trialability are found to be insignificant as mediators in either parallel or serial mediation of this study. The outcomes of this study contribute to the literature on e-wallet that explores the relationship of NE with attitudes and the study of brand image as well as the mediation effect of innovation characteristics in these relationships.
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