Trust in Smart Homes: The Power of Social Influences and Perceived Risks

Abstract

The increased reliance on smart technologies has caused people to consider smart homes. A smart home is using basic assistive devices to build a home environment that contains many technological features and home appliances that are connected and integrated. In order to adopt smart homes, it is needed that users trust this technology, and the factors that influence trust are yet to be discovered. Thus, the aim of this study is to gain a deeper understanding of customer trust in smart homes by empirically exploring the factors that influence customers’ trust in smart homes, understanding how those factors are intercorrelated, and the influence of power and direction of each factor. To address the research aim, an online survey is conducted to explore the perceptions of the residents of the UAE residents through a convenience sampling approach. As a result, most people believe that smart homes are reliable and competent. By collecting 158 responses and analyzing them through the SEM-PLS approach, it is found that the social influence, perceived security risks, and perceived financial risks significantly impact customers’ trust in smart homes and that the social influences can significantly impact people’s perceived risks (security, privacy, and financial risks) as mediators to trust in smart homes.