The Role of Facilitating Conditions and Institutional Trust in Electronic Marketplaces

The Role of Facilitating Conditions and Institutional Trust in Electronic Marketplaces

Pauline Patnasingam (Central Missouri State University, USA), David Gefen (Drexel University, USA) and Paul A. Pavlou (University of California, Riverside, USA)
Copyright: © 2005 |Pages: 14
DOI: 10.4018/jeco.2005070105
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Abstract

Given the uncertainties of e-business, this paper examines the role of institutional trust, which has been viewed as a key facilitator of electronic marketplaces (Pavlou, Tan, & Gefen 2003). In doing so, we draw upon the principles of research on traditional EDI via value-added-networks to develop a set of theory-driven institutional trust-building facilitating conditions; namely, (a) IT connectivity, (b) standards, (c) security, and (d) uniform product descriptions. This study has implications for (1) the nature and role of institutional trust in e-marketplaces, (2) the strategic design of trust-building mechanisms in e-marketplaces, and (3) an extension of the literature on institutional trust.

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