The Boundaries of Trust and Risk: The Quadratic Moderating Role of Institutional Structures

2012 | Information Systems Research | Citations: 74

Authors: Gefen, David; Pavlou, Paul A.

Abstract: A prevalent assumption in the literature is that trust and risk are always relev ... Expand

Abstract: A prevalent assumption in the literature is that trust and risk are always relevant in online marketplaces, and that there is always a need to build trust and reduce risk irrespective of context. Challenging this assumption, this study seeks to identify the boundaries of the effects of trust and risk on transaction activity in the context of institutional structures in online marketplaces. The perceived effectiveness of institutional structures (PEIS), defined as the extent buyers believe that appropriate conditions are in place to facilitate transactions with sellers, sets the boundaries of trust and risk by moderating their effects on transaction activity in a quadratic (inverted-U) fashion. Specifically, at the lower boundary condition of PEIS (among buyers who believe institutional structures are ineffective), the high situational uncertainty they perceive should make these buyers unwilling to become vulnerable to sellers, thus rendering trust and risk immaterial to their decision making. Trust and risk should also be immaterial at the higher boundary condition of PEIS (among buyers who believe institutional structures are very effective), because the insufficient situational uncertainty makes trust and risk irrelevant to these buyers' decision making because of a lack of vulnerability. Only between these two boundary conditions (among buyers who perceive moderate levels of PEIS), and thus a moderate degree of situational uncertainty and vulnerability in the marketplace, should trust and risk have a significant effect on transaction activity. Data from 398 buyers on eBay's and Amazon's online marketplaces support the quadratic moderating role of PEIS on the effect of risk on transaction activity, but not on the effect of trust. Theoretical and practical implications on specifying the boundaries of the effects of trust and risk and understanding the direct and moderating role of institutional structures are discussed. Collapse

Topics: electronic market decision making individual characteristic internet technology electronic mail

Methods: descriptive statistic regression analysis method polynomial regression statistical hypothesis test autocorrelation analysis

Theories: social exchange theory technology acceptance model

What Does the Brain Tell Us About Trust and Distrust? Evidence from a Functional Neuroimaging Study

2010 | Management Information Systems Quarterly | Citations: 198

Authors: Dimoka, Angelika

Abstract: Determining whom to trust and whom to distrust is a major decision in impersonal ... Expand

Abstract: Determining whom to trust and whom to distrust is a major decision in impersonal IT-enabled exchanges. Despite the potential role of both trust and distrust in impersonal exchanges, the information systems literature has primarily focused on trust, alas paying relatively little attention to distrust. Given the importance of studying both trust and distrust, this study aims to shed light on the nature, dimensionality, distinction, and relationship, and relative effects of trust and distrust on economic outcomes in the context of impersonal IT-enabled exchanges between buyers and sellers in online marketplaces. This study uses functional neuroimaging (fMRI) tools to complement psychometric measures of trust and distrust by observing the location, timing, and level of brain activity that underlies trust and distrust and their underlying dimensions. The neural correlates of trust and distrust are identified when subjects interact with four experimentally manipulated seller profiles that differ on their level of trust and distrust. The results show that trust and distrust activate different brain areas and have different effects, helping explain why trust and distrust are distinct constructs associated with different neurological processes. Implications for the nature, distinction and relationship, dimensionality, and effects of trust and distrust are discussed. Collapse

Topics: user training word of mouth electronic trading online auction business-to-consumer

Methods: functional magnetic resonance imaging survey design digital trace data psychometrics experiment

Theories: prospect theory

The structure of political discussion networks: a model for the analysis of online deliberation

2010 | Journal of Information Technology | Citations: 0

Authors: Gonzalez-Bailon, Sandra; Kaltenbrunner, Andreas; Banchs, Rafael E.

Abstract: This paper shows that online political discussion networks are, on average, wide ... Expand

Abstract: This paper shows that online political discussion networks are, on average, wider and deeper than the networks generated by other types of discussions: they engage a larger number of participants and cascade through more levels of nested comments. Using data collected from the Slashdot forum, this paper reconstructs the discussion threads as hierarchical networks and proposes a model for their comparison and classification. In addition to the substantive topic of discussion, which corresponds to the different sections of the forum (such as Developers, Games, or Politics), we classify the threads according to structural features like the maximum number of comments at any level of the network (i.e. the width) and the number of nested layers in the network (i.e. the depth). We find that political discussion networks display a tendency to cluster around the area that corresponds to wider and deeper structures, showing a significant departure from the structure exhibited by other types of discussions. We propose using this model to create a framework that allows the analysis and comparison of different internet technologies for the promotion of political deliberation. Collapse

Topics: decision making internet technology anonymity computer hardware social media

Methods: principal component analysis data transformation cross sectional research qualitative interview natural language processing