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Institution-based trust in interorganizational exchange relationships: the role of online B2B marketplaces on trust formation by Paul A Pavlou is a Business, Management and Accounting article available to read on EtoBox.

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Given the uncertainty of online transactions, the digital economy encourages the creation of institutional structures that assure online interorganizational exchange relationships. This research examines how institution-based trust develops in online B2B marketplaces to facilitate interorganizational trust (buyers' trust in sellers). Building upon the notion of institutional trust [Zucker,1986], this study proposes how specific institution-based structures help engender interorganizational trust and indirectly influence transaction success in B2B marketplaces. Five specific institution-based mechanisms are proposed-perceived monitoring, perceived legal bonds, perceived accreditation, perceived feedback, and perceived cooperative norms. To assess the influence of the proposed two dimensions of interorganizational trust-credibility and benevolencein buyer-seller relationships, three trust outcomes are examined-satisfaction, perceived risk, and continuity. The proposed model is tested on data from 102 organizational buyers in an online B2B marketplace. The results support the proposed model, delineating the relationship between institutionbased trust and interorganizational trust. The

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Author

Paul A Pavlou

Publisher

Elsevier Science; Elsevier ; Elsevier BV (ISSN 0963-8687)

Published

2002

Language

EN

Field

Business, Management and Accounting (Social Sciences)