Discovering the Influencing Factors of Physical Gig Economy Usage: Quantitative Approach on Clients9 Perception

Abstract

Physical Gig Economy (PGE) in Indonesia has rapid growth in the last few years. Unfortunately, a large gap among PGE services occurred. Compared with ride-hailing services with highly frequent transactions, cleaning and mechanical services have had few transactions. This study aims to identify and analyze the factors that influence clients to use PGE services. Previous studies about users’ intention were synthesized to develop the research model and hypothesis. Factors that are thought to have an influence on client behavior and intention are platform quality, trust, social influence, perceived risk, hedonic motivation, and economic benefits. Furthermore, a quantitative approach with Partial Least Squares Structural Equation Modeling (PLS-SEM) and 318 valid respondents is demonstrated. The results show that hedonic motivation is the most influencing factor followed by economic benefits, trust, and perceived platform quality. This study also informs that social influence only affects client on the early usage of PGE. Having the knowledge of these factors, PGE operators could develop the right strategies to further expand their business and attract new clients.