Literature Review

Abstract

In chapter 2, we discussed the findings of an initial exploratory survey. In this chapter we undertake an in-depth literature review of business-to-business e-commerce and the importance of trust. The task of undertaking a literature review is challenging, especially when it involves theories from multiple disciplines. The chapter begins with a discussion of e-commerce from two perspectives: a technological perspective (including technology trust mechanisms), and a social perspective (discussing trust behaviours in business relationships). Incorporated into the analysis are previous theories that focus on organizational behaviour (inter-organizational relationships), economic perspective (transaction-cost-economics theory), and political perspective (resource dependency theory). The rest of the chapter is organized as follows. First, we discuss the literature pertaining to the need for inter-organizational trust and provide definitions of trust from multi-disciplines, as well as characteristics and the development of trust in business relationships. This is followed by a discussion of the perceived benefits, perceived risks, and technology trust mechanisms in e-commerce leading to outcomes of e-commerce participation. Then, we examine the organizational, economic, and political theories leading to the evolution of inter-organizational systems to inter-organizational trust. Finally, we conclude the chapter with the development of the conceptual model of inter-organizational trust in e-commerce participation, leading to a justification of the research propositions derived from the model.