The Role of Trust in Businessto- Business E-Commerce Collaboration in a Unique Environment in Australia

Abstract

This research explores interorganisational collaboration in business-to-business e-commerce, and the factors that influence its development in a unique Australian environment. Using a qualitative case study approach, seven informants from four Tasmanian organisations were interviewed. The data confirmed trust was an important prerequisite for the establishment and development of both electronic and traditional interorganisational relationships. Collaborative relations such as communication and repeated interactions facilitated the development of trading-partner trust. Interestingly, trading-partner size did not influence trading partner trust, although “volume of business conducted” between trading partners was an influencing factor. Other factors included trading-partner reputation and length of preexisting relationship. Perceived benefits of trading partner trust included general business efficiencies, business growth, faster payment, increased information sharing and confidence, improved business relations, delivery, and reliability. The results enhance organisational awareness of similarities and differences between traditional and electronic business-to-business trading relationships, and contribute to the growing body of knowledge on interorganisational trust and business-to-business e-commerce. The influence of the unique Tasmanian environment was acknowledged and discussed as a mediating variable in considering the findings.