Consumer Trust in Digital Business Ecosystems: Data Privacy Governance, Cybersecurity, and Sustainable Transaction Decisions

Abstract

Amid escalating data breaches and cybersecurity threats within the digital economy, consumers' sustainable transaction decisions rely heavily on robust data safeguards. This study analyzes the impacts of data privacy governance and cybersecurity capabilities on consumers' sustainable transaction intentions, examining the crucial mediating role of digital trust. Utilizing an explanatory survey, data were collected from 310 active Indonesian digital consumers across e-marketplaces and digital payment ecosystems. Empirical data were examined using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 4.0. Findings demonstrate that: (1) data privacy governance positively and significantly affects digital trust (β = 0.432; p < 0.001) and sustainable transactions (β = 0.182; p < 0.01); (2) cybersecurity capabilities positively enhance digital trust (β = 0.388; p < 0.001) and sustainable transactions (β = 0.165; p < 0.01); (3) digital trust exerts a dominant positive effect on sustainable transaction decisions (β = 0.582; p < 0.001); and (4) digital trust partially mediates the effects of both data privacy governance (indirect effect β = 0.251; p < 0.001) and cybersecurity capabilities (indirect effect β = 0.226; p < 0.001) on sustainable transactions. The model accounts for 58.4% of the variance in digital trust and 63.7% in sustainable transaction decisions (R² = 0.637). These results affirm that data privacy governance and cybersecurity investments represent vital strategic differentiators for sustaining digital commerce loyalty.