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This chapter discussed the importance of inter-organizational-trust in B2B e-commerce. The findings did support and validate the research propositions outlined in this study. The findings also contributed to theory derived from the development of an integrated model of inter-organizational-trust in e-commerce participation from a multi-disciplinary literature. The first contribution made to theory is the successful bridging of ideas from multi-disciplinary literature. The integrated conceptual model tested in this study was developed on the basis of several well established theories from multi-disciplinary literature, including the marketing, management, sociology, information systems, and e-commerce literature that led to the development of the constructs in the model. A synthesis of the above theories provided a new approach for exploring, studying, and describing inter-organizational-trust relationships in e-commerce participation. Previous research on e-commerce mostly focused on technological benefits and its competitive advantages. This study not only tested the technological perspective, but also the behavioral, economical, organizational and socio-political perspectives of trading partners. Furthermore, previous research examined either the suppliers or buyers from one type of industry. This study examined both trading partners within an inter-organizational-dyad, and from a cross selection of industries including organizations involved in customs clearance (i.e., the Internet Service Provider, customs broker and importer). Thus, inter-organizational-trust was seen at two levels, namely, (1) the ability to operate e-commerce applications correctly (technology trust), as in human data input (that is accurate, complete and correct), thereby enabling transactions to be read and interpreted correctly. The tendency to send incorrect data due to a lack of awareness and education has led to high costs and expenses, as trading partners had to re-send the transactions; and (2) trading partner trust (or relationship trust), as in the ability to work cooperatively, and being willing to support, encourage, share information, and commit to their business, rather than work according to a trading contract.
The contributions to practice and businesses came from an increased awareness on the importance of inter-organizational-trust by case study participants. Further, empirical research via case studies was conducted in the telecommunications, computer and communications, and automotive industries. The findings clearly provided evidence on the importance of inter-organizational-trust in e-commerce participation. Future research will be undertaken as part of a longitudinal study, which aims to examine the refined model of inter-organizational-trust extensively via a survey research method.
Constructs in the Conceptual model | Competence Trust Economic Foundation | Predictability Trust Familiarity Foundation | Goodwill Trust Empathy Foundation |
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Technology Trust | Trust and security-based mechanisms include: Confidentiality Authentication Integrity Access controls Availability Access controls Non-repudiation | Consistent and extensive use of trust and security-based mechanisms leading to trading partner satisfaction | Consistent and extensive use of trust and security-based mechanisms and best business practices in the form of regular audits, top management commitment, and contingency procedures Increased trading partner satisfaction |
Development of trust | Transactional trust - based on B-B EC transactions | A combination of transactional and relational trust | Relational trust based on trading partner's trust behaviors |
Relationship Trust Trust | Formal - objective (hard-trust) | Formal and informal | Informal - subjective (soft-trust) |
Perceived Benefits of E-Commerce | Direct (economic) benefits derived from savings in costs and time | Indirect (personal) benefits or (relationship) benefits | Strategic (symbolic) benefits |
Perceived Risks of E-Commerce | Technology-related risks are derived from incompatible e-commerce systems, lack of skills, expertise and training | People-related risks are derived from trading partner's opportunistic behaviors, such as coercive power tactics and conflicts | General risks are derived from poor business practices |
Extent of E-Commerce Participation | Short-term fixed contracts (0-3 years) with fixed volumes, dollar values and types of business transactions Explores trading partner trust Evaluates formal technological mechanisms | Mid-term contracts (3-5 years) Explores new types of transactions Develops predictability trust from past experiences | Long term contracts (5-10 years) Increases in the volumes, dollar value and types of transactions Establishes a commitment to trust of their trading partners Experiences trading partner satisfaction and goodwill Increased reputation |
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