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Pan-Pacific Conference XXXIV. Designing New Business Models in Developing Economies

This publication represents the Proceedings of the 34th Annual Pan-Pacific Conference being held in Lima, Peru May 29-31, 2017. The Pan-Pacific Conference has served as an important forum for the exchange of ideas and information for promoting understanding and cooperation among the peoples of the world since 1984. Last year, we had a memorable conference in Miri, Malaysia, in cooperation with Curtin University Sarawak, under the theme of “Building a Smart Society through Innovation and Co-creation.” Professor Pauline Ho served as Chair of the Local Organizing Committee, with strong leadership support of Pro Vice-Chancellor Professor Jim Mienczakowski and Dean Jonathan Winterton.

This publication represents the Proceedings of the 34th Annual Pan-Pacific Conference being held in Lima, Peru May 29-31, 2017. The Pan-Pacific Conference has served as an important forum for the exchange of ideas and information for promoting understanding and cooperation among the peoples of the world since 1984. Last year, we had a memorable conference in Miri, Malaysia, in cooperation with Curtin University Sarawak, under the theme of “Building a Smart Society through Innovation and Co-creation.” Professor Pauline Ho served as Chair of the Local Organizing Committee, with strong leadership support of Pro Vice-Chancellor Professor Jim Mienczakowski and Dean Jonathan Winterton.

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cop<strong>in</strong>g-appraisal component of the model. Self-efficacy<br />

concerns an <strong>in</strong>dividual’s beliefs about whether he or she is<br />

able to perform the recommended cop<strong>in</strong>g response.<br />

Response costs regards the concern on how costly<br />

perform<strong>in</strong>g the recommended response will be to the<br />

<strong>in</strong>dividual.<br />

2. Research Model<br />

Accord<strong>in</strong>g to PMT, protection motivation consists of two<br />

cop<strong>in</strong>g mechanisms: adaptive and maladaptive. Adaptive<br />

cop<strong>in</strong>g can be considered an effort to maximize the<br />

positive utility of the activity or behavior. To evaluate<br />

adaptive cop<strong>in</strong>g, efficacy and response costs are<br />

considered. Efficacy is the activity where agents try to<br />

maximize positive utility and response cost is the cost that<br />

should be paid when agents try to maximize efficacy. In<br />

this model, agents try to maximize the obta<strong>in</strong>ment of<br />

reputation, positive evaluation, self-satisfaction or fun by<br />

transferr<strong>in</strong>g <strong>in</strong>formation. This can be considered efficacy.<br />

Loss of knowledge or the possibility of knowledge loss<br />

when can be considered the response costs. Therefore,<br />

maximization of the difference between efficacy and<br />

response cost can be considered a cop<strong>in</strong>g appraisal.<br />

Maladaptive cop<strong>in</strong>g can be considered an effort to<br />

m<strong>in</strong>imize negative utility. To evaluate maladaptive cop<strong>in</strong>g,<br />

<strong>in</strong> PMT, rewards and severity are considered. The reward<br />

is the pleasure obta<strong>in</strong>ed by the activity, while severity is<br />

the (possible) risk or danger of the activity. Therefore, the<br />

agents are will<strong>in</strong>g to m<strong>in</strong>imize the severity if the rewards<br />

are the same. In this model, agents try to m<strong>in</strong>imize the risk<br />

of virus or security fear when agents maximize the utility<br />

of knowledge acquisition. Consider<strong>in</strong>g both adaptive and<br />

maladaptive cases, the agents would maximize the<br />

protection motivation by try<strong>in</strong>g to reduce the response cost<br />

and severity. The question of this research is how to reduce<br />

the response cost and severity. The authors suggest two<br />

methods. The first is by us<strong>in</strong>g computer security<br />

technologies, and the second method is to appeal to ethics.<br />

Computer technology is a direct and forceful method but<br />

requires extra cost. While ethics are <strong>in</strong>direct, it has a wide<br />

application range and no extra cost is needed.<br />

3. Hypotheses<br />

Ethics can be used as a tool of protection for agents. Ethics<br />

(Ferrell p. 239) has provided a norm <strong>in</strong> many different<br />

areas such as sexual discrim<strong>in</strong>ation, racial discrim<strong>in</strong>ation,<br />

price discrim<strong>in</strong>ation, bribery, harmful product, pollution,<br />

telecommunication issue, <strong>in</strong>tellectual property protection,<br />

and many others. If the premise, “ethics is a tool of<br />

protection” is true, the criteria of apply<strong>in</strong>g ethics to the<br />

above fields will be different. This is because the needs of<br />

protection will be different accord<strong>in</strong>g to the subjects and,<br />

therefore, the level of standard of ethics will be different<br />

accord<strong>in</strong>g to the subject. Therefore, the follow<strong>in</strong>g<br />

hypothesis was set up.<br />

H1) Agents apply the different level of standards of<br />

ethics accord<strong>in</strong>g to the subject.<br />

H2-1) The more agents are <strong>in</strong>terested <strong>in</strong> knowledge<br />

absorption, the more they are active <strong>in</strong> onl<strong>in</strong>e<br />

user participation.<br />

H2-2) The more agents are <strong>in</strong>terested <strong>in</strong> knowledge<br />

transfer, the more they are active <strong>in</strong> onl<strong>in</strong>e user<br />

participation.<br />

H3-1) The more agents want to absorb knowledge, the<br />

more they emphasize security to prevent the<br />

unwanted or false <strong>in</strong>flow of knowledge.<br />

H3-2) The more agents want to absorb knowledge, the<br />

more they emphasize ethics to prevent the<br />

unwanted <strong>in</strong>flow of knowledge.<br />

H4-1) The more agents want to transfer knowledge,<br />

the more they emphasize security to prevent the<br />

unwanted outflow of knowledge.<br />

H4-2) The more agents want to transfer knowledge,<br />

the more they emphasize ethics to prevent the<br />

unwanted outflow of knowledge.<br />

H5-1) The more agents emphasize security, the more<br />

they are active <strong>in</strong> onl<strong>in</strong>e user participation.<br />

H5-2) The more agents emphasize ethics, the more<br />

they are active <strong>in</strong> onl<strong>in</strong>e user participation.<br />

F<strong>in</strong>d<strong>in</strong>gs and Discussion: Analysis of the structural<br />

equation model<br />

From the primary data (n = 497), the SEM was exam<strong>in</strong>ed<br />

to test the relationships between participation <strong>in</strong> the virtual<br />

community and knowledge shar<strong>in</strong>g (absorption and<br />

transfer), security of <strong>in</strong>formation systems, and ethics of<br />

<strong>in</strong>formation society with seven moderat<strong>in</strong>g variables: age,<br />

<strong>in</strong>come, experience, major (computer related or not),<br />

religion, gender, and education. The authors used AMOS<br />

18 to analyze the proposed model and significant paths<br />

were found. As expected, sense of security, sense of ethics<br />

<strong>in</strong> <strong>in</strong>formation society, sense of knowledge shar<strong>in</strong>g, and<br />

onl<strong>in</strong>e user participation were related to each other.<br />

Additionally, seven moderat<strong>in</strong>g factors had a significant<br />

effect on some paths. Fig. 1 and 2 show the results of<br />

hypothesis test<strong>in</strong>g.<br />

<br />

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