The analysis of factors affecting online investment platforms in the Philippine context: an integration of SET-VBN theory

Abstract

Innovative technology initiated the popularity of online investment platforms (OIPs) among households. However, acceptability and human factors affecting behavioral use has been underexplored despite its popularity. This study’s main objective was to assess consumers’ behavioral intention to invest among investors from the Philippines through purposive sampling. The integration of Social Exchange Theory (SET) and Value-Belief-Norm Theory (VBN) was considered for the holistic assessment in this study. This study was assessed and evaluated holistically through a higher-order partial least square structural equation analysis to determine significant factors affecting investment intention. Analysis using SMART-PLS v4.0, it was seen that social norm was the most significant latent variable, followed by values (ie traditional, egoistic, openness to change, and altruistic), trust, personal norm, perceived safety, beliefs on utility function, and economic benefit. The study highlights the importance of the perception of influential people regarding investment and how crucial it is for consumers to have their values aligned and satisfied with the platform. The study is the first to utilize SET and VBN outside their usual context – sustainability and environmental-related behavioral studies. Thus, the newly contextualized framework could be developed and extended with further implications presented for utilization both in the theoretical and practical aspects.

Keywords

• Higher-order PLS-SEM
• investment behavior
• online investment platform
• Social Exchange Theory
• Value-Belief-Norm Theory
• Applied Mathematics