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Financial robo-advisors are gaining more technological maturity, yet investors’ resistance remain a significant challenge to their wider adoption. Anchored in Innovation Resistance Theory (IRT), the study focuses primarily on passive innovation resistance by examining psychological barriers contributing to investors’ reluctance and also the role of status-quo-satisfaction in shaping adoption resistance. The study seeks to delve deeper into the novel psychological barriers that may impede the adoption of robo-advisors, leading to the development of a robust conceptual model. The 504 investors’ responses were analyzed using structural equation modeling. Findings revealed that legal vulnerabilities followed by provider and technology vulnerabilities significantly uplift privacy concerns, ultimately contributing to investors’ reluctance. Perceived complexity and perceived novelty did not show any direct influence. Psychological barriers, particularly perceived complexity, algorithm aversion, and autonomy estrangement significantly impact resistance, with status-quo-satisfaction partially mediating the relationship. The study offers critical insights on psychological roadblocks and guide strategies to address adoption resistance.
Goswami et al. (Tue,) studied this question.