Introduction

2011 ◽  
pp. 1-11 ◽  
Author(s):  
Pauline Ratnasingam
Keyword(s):  
Organizational Trust ◽  
Trading Partner ◽  
Business Relationships ◽  
Organizational Relationships ◽  
Telecommunications Networks ◽  
Business Transactions ◽  
Business Information ◽  
Trading Partners ◽  
Partner Relationships ◽  
Business To Business

In this chapter we introduce the motivation for the study and discuss the background of inter-organizational trust, followed by significant prior research leading to a rationale of this study. Then we discuss previous research in e-commerce adoption, its history, growth, and an analysis of the factors that drive and inhibit e-commerce adoption. E-commerce is the sharing of business information, maintaining business relationships, and conducting business transactions by means of telecommunications networks (Zwass, 1996:3). E-commerce applications facilitate communication and information exchanges between organizations, thereby enabling mass manufacturing, production, and customization to occur (Giaglis et al., 1998). E-commerce is changing the shape of competition, the dynamics of trading partner relationships, and the speed of fulfillment (Kalakota and Robinson, 2001). In this study, a trading partner is considered to be an organization which engages in business-to-business e-commerce. Trading partners can play various roles of suppliers, merchants, brokers, or customers. They interact with one another to form Inter-organizational relationships (IOR’s). To avoid the possibility of anthropomorphizing the organization, and inferring that the trustor is an organization, inter-firm trust is viewed as the collectively held cognitive belief of a group of well-informed individuals within a firm (Zaheer, McEvily, and Perrone, 1998). Thus, in this study the terms trading partner trust and inter-organizational trust are used interchangeably.

Literature Review

2011 ◽  
pp. 22-70
Author(s):  
Pauline Ratnasingam
Keyword(s):  
Literature Review ◽  
Transaction Cost Economics ◽  
Organizational Trust ◽  
Business Relationships ◽  
Organizational Relationships ◽  
Organizational Behaviour ◽  
Political Perspective ◽  
Political Theories ◽  
Research Propositions ◽  
Business To Business

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.

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

2011 ◽  
pp. 158-181
Author(s):  
Carol Pollard ◽  
Amanda Diggles
Keyword(s):  
Influencing Factor ◽  
Trading Partner ◽  
Business Growth ◽  
Study Approach ◽  
Body Of Knowledge ◽  
Trading Partners ◽  
General Business ◽  
Business To Business

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.

Developing Inter-Organizational-Trust in Business to Business E-Commerce Participation - Case Studies in the Automotive Industry

2011 ◽  
pp. 184-194
Author(s):  
Pauline Ratnasingam
Keyword(s):  
Automotive Industry ◽  
Motor Vehicle ◽  
Organizational Trust ◽  
Motor Vehicles ◽  
Supplier Relationships ◽  
Cooperative Relationships ◽  
Political Processes ◽  
Orderly Fashion ◽  
Trading Partners ◽  
Business To Business

Inter-organizational-systems such as EDI have been the main form of business-to business ecommerce participation in the automotive industry for the last two decades. Previous studies in EDI adoption mostly examined environmental, organizational and technological factors. This study draws insights developed within the sociology of technology, in which innovation is not simply a technicalrational process of solving problems, but involves economic, behavioral and political processes required for building inter-organizational trust. The transition to cooperative relationships between buyers and suppliers may be more difficult for automotive companies because of complexity, compatibility, long lead times and ingrained adversarial supplier relationships (Langfield-Smith & Greenwood, 1998). Therefore, trust is important as organizations need to cooperate, collaborate and communicate timely and relevant information, in order to facilitate EDI that entails not only technological proficiencies, but also trust between trading parties, so that business transactions are sent and received in an orderly fashion. An analysis of the trust behaviors that influence EDI adoption will be useful for evaluating EDI participation. The aim of this study is to address the following intriguing questions: How does trading partner trust impact EDI participation? How do issues relating to coercive power among trading partners impact inter-organizational trust?, and What is the importance of trust within an inter-organizational dyad. Ford has been using EDI since the electronic data transmissions commenced in 1988. The aim of EDI is to communicate production requirements of five car manufacturers (namely, Ford, General Motors Holden, Toyota, Mitsubishi and Nissan), to their component suppliers in order to meet the demands of the Australian and overseas motor vehicle markets. The automotive industry had more experience than other industries in developing inter-organizational relationships. Ford Australia was nationally and internationally popular because motor vehicles were exported to New Zealand and the Asia Pacific region.

Who Trusts Who?

2014 ◽  
Vol 4 (1) ◽  
pp. 17-37
Author(s):  
Risto Seppänen
Keyword(s):  
Qualitative Study ◽  
Organizational Context ◽  
Organizational Trust ◽  
Fundamental Question ◽  
Boundary Spanners ◽  
Business Relationships ◽  
Organizational Relationships ◽  
Individual Level ◽  
Organizational Settings ◽  
Organizational Levels

Previous research on the nature of trust in an organizational context provided somewhat controversial and ambiguous results. There are both conceptual and operational difficulties in exploring this intuitively individual-level phenomenon at organizational and inter-organizational levels. The fundamental question of where trust resides in inter-organizational relationships remains unresolved. This qualitative study focuses on inter-organizational trust in dyadic business relationships. The phenomenon is approached both from the concept of the trustor and the trustee. The results suggest that the trusting party is not the organization itself, but the individuals who constitute it. Instead, the ultimate object of trust in inter-organizational settings is both individual boundary-spanners, and the organization.

Conclusions

2011 ◽  
pp. 149-158
Author(s):  
Pauline Ratnasingam
Keyword(s):  
Organizational Trust ◽  
Theory And Practice ◽  
Trading Partner ◽  
Future Research ◽  
Control Mechanisms ◽  
Technology Infrastructure ◽  
Gradual Process ◽  
Physical Presence ◽  
Partner Relationships ◽  
And Control

In this chapter we conclude our study by contributing to a model of inter-organizational trust within bi-directional dyads based on the findings of this study. The participants agreed that technology trust mechanisms (also known as technology trust) by and large exist in e-commerce technologies and applications. Technology trust is defined as “the subjective probability by which an organization believes that the underlying technology infrastructure and control mechanisms are capable of facilitating inter-organizational transactions according to its confident expectations” (Ratnasingam and Pavlou, 2002, 2003). However, what is more important is the need to develop trading partner relationships that will form cohesive (win-win) trading partner relationships. Most of the participants agreed that developing trust is a gradual process and can be challenging because of differing personalities and expectations, the lack of a physical presence, varied standards used within each organization, and the changing external e-commerce environment. The rest of the chapter is organized as follows. The next section presents and discusses the model of inter-organizational trust within bi-directional dyads. Then we discuss the contributions to theory and practice, leading to the limitations of the study and recommendations for future research.

scholarly journals MANAGING INNOVATION PROCESSES THROUGH VALUE CO-CREATION: A PROCESS CASE FROM BUSINESS-TO-BUSINESS SERVICE PRACTISE

2018 ◽  
Vol 22 (03) ◽  
pp. 1850030 ◽  
Author(s):  
GIULIA NARDELLI ◽  
MARCEL BROUMELS
Keyword(s):  
Service Providers ◽  
Organizational Trust ◽  
Business Service ◽  
Innovation Activities ◽  
Longitudinal Investigation ◽  
Business To Business ◽  
Manage Innovation ◽  
Relation Development ◽  
Innovation Processes ◽  
Over Time

Value co-creation is a specific type of collaboration that is considered to be an innovative and interactive process between end users and organizations; it aims to increase the value of a product or service. This study investigates how a network of stakeholders collaborating to manage innovation openly co-creates value over time; it contributes to the existing literature on value co-creation by taking the perspective of the network as a whole. The study follows a case in which value co-creation unfolds over time across a network of stakeholders within the business-to-business facility service context. The in-depth longitudinal investigation of a network composed of a corporate customer and its external facility service providers revealed that a network of stakeholders co-creates value over time by (i) offering an adaptable structure for the network to organize innovation activities and establish support routines, (ii) facilitating interactions to support stakeholder relation development and (iii) allowing participants to achieve self-empowerment. Therefore, stakeholder value co-creation entails the combination of single value co-creation activities and overarching network progressions that allow for learning and inter-organizational trust among stakeholders.

scholarly journals Supply chain process collaboration and Internet utilization: an international perspective of business to business relationships

2011 ◽  
Vol 13 (4) ◽  
Author(s):  
Marcos Paulo Valadares de Oliveira ◽  
Kevin McCormack ◽  
Marcelo Bronzo Ladeira ◽  
Peter Trkman ◽  
Joachim Van den Bergh
Keyword(s):  
Supply Chain ◽  
International Perspective ◽  
Chain Process ◽  
Business Relationships ◽  
Process Collaboration ◽  
Supply Chain Process ◽  
Business To Business
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