Network Externality Effects on Behavioral Intention to Use Consumer Internet of Things Among Urban Citizens in Indonesia

Abstract

Abstract One of the most popular technologies is the internet of things (IoT). It refers to the number of users and penetration in the industry (I-IoT) and consumer (C-IoT) sectors. The previous stud-ies indicated that the usage rate of the C-IoT is outperforming the I-IoT worldwide. However, the contrary indication occurred in Indonesia. Among developing countries, the spending level of IoT in Indonesia is significant, but the use level of the technology is less developed. This survey study purposed to predict what factors influence the behavior intention to use C-IoT. The researchers extended the unified theory of acceptance and use of technology (UTAUT) model by adopting the network externality aspects. Around 400 valid data were collected from urban communities in the six most populous provinces in the country. The scholars used the partial least squares structural equation modeling (PLS-SEM) method using SmartPLS 3.3 in the data analysis stage. The findings expressed that the number of users and social influence factors are not influential factors influencing behavior intention to use IoT. Besides that, the UTAUT model extension may also be one of the theoretical references for future similar studies. Practically, the findings may also be one of the considerations for the stakeholders of C-IoT implementation in Indonesia.