The antecedents and moderation roles of internal e-commerce institutional mechanisms: The case of gopay in Indonesia

Abstract

The emergence of financial technology has enabled online business platforms to provide e-commerce institutional mechanisms (EIM). There are some concerns regarding the use of EIM such as trust in e-commerce platform and value of transactions. While prior literatures mostly focused on EIM, the roles of internal EIM is less studied specially in Indonesian context. The current study examines contingency factors that determine the use of internal e-commerce institutional mechanisms (IEIM). This study also investigates whether the use of internal e-commerce institutional mechanisms can reduce the need for trust factor in e-commerce transactions. GOPAY that is one of the internal e-commerce institutional mechanisms in Indonesia is used as study case. Data are collected through an online survey of 117 GOPAY users. Multiple regression and moderated regression analyses are applied to analyze the data. This study finds that essential needs products and micropayment transactions are associated with the use of GOPAY. Also, trust in a platform is associated with repurchase intention. However, the use of GOPAY does not decrease the need for trust in a platform in e-commerce purchase intention. A low banking penetration environment in Indonesia does not relate with the use of internal e-commerce institutional mechanisms. In conclusion, this study provides insights into how Indonesian people use the internal e-commerce institutional mechanisms as part of micropayment to support online essential needs product transactions.