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Lessons Learned from EDI and Its Impact on Institutional Trust in Electronic Marketplaces

Lessons Learned from EDI and Its Impact on Institutional Trust in Electronic Marketplaces

Pauline Ratnasingam (University of Central Missouri, USA), David Gefen (Drexel University, USA), and Paul A. Pavlou (University of California, Riverside, USA)
Copyright: © 2007 |Pages: 17
DOI: 10.4018/978-1-59140-932-8.ch012
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Abstract

Given the uncertainties of e-business, this chapter 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 electronic data interchange (EDI) via value-added-networks (VANs) to develop a set of theory-driven, institutional trust-building, facilitating conditions, namely, (1) IT connectivity, (2) standards, (3) security, and (4) 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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