Location-based monitoring in production environments: does transparency help to increase the acceptance of monitoring?

In the context of smart manufacturing, the technical development of monitoring systems has made it possible to track employees with the same systems that are used to track assets. This study contributes to our understanding of the acceptance of location-based monitoring of employees and investigates how the perceived privacy risk regarding monitoring can be tackled by examining the role of transparency and the perceived value of monitoring. We designed an experimental setting in which students assembled a 3D printer and manipulated transparency with two conditions: a detailed explanation of monitoring during the task vs. monitoring without any explanation. The results show that the higher the privacy concerns and perceived risks were, the lower was the acceptance for monitoring. However, the negative effect of perceived risk diminishes when both, transparency and the value of monitoring are high, but becomes even stronger when only transparency is high and perceived value is low.