Trust Across Borders: Buyer-Supplier Trust in Global Business-to-Business E-Commerce

Journal of the Association for Information Systems, 2012, 13(11), pp. 886-922

37 Pages Posted: 29 Jan 2009 Last revised: 23 Sep 2014

See all articles by Tat Koon Koh

Tat Koon Koh

Hong Kong University of Science & Technology (HKUST) - Department of Information Systems, Business Statistics and Operations Management

Mark Fichman

Carnegie Mellon University - Graduate School of Industrial Administration

Robert E. Kraut

Carnegie Mellon University - David A. Tepper School of Business; Carnegie Mellon University - School of Computer Science

Abstract

This study focuses on trust formation and development in global buyer-supplier relationships. Trust affects all business relationships, especially global business-to-business (B2B) transactions due to the distances between buyers and suppliers. We use information signaling theory to examine how information indices and signals affect buyers’ trust in suppliers in global B2B commerce. Specifically, we examine how buyers’ trust is affected by (1) their perceptions of the national integrity and legal structure of suppliers’ country, and (2) third-party verifications of suppliers on B2B exchanges. Because buyer-supplier relationships usually evolve over time, we study how the effects of indices and signals change as the number of transactions between the partners increases. A survey of global organizational buyers finds that perceptions of national integrity, legal structure, and supplier verifications are all positively related to buyers’ trust. However, the number of prior transactions between buyers and suppliers moderates the impact of perceived legal structure on buyers’ trust.

Keywords: Trust, Online Exchange, E-Commerce, Buyer-Supplier Relationship, Globalization, Supplier Verification, Legal Structure, National Integrity, Information Signaling

Suggested Citation

Koh, Tat Koon and Fichman, Mark and Kraut, Robert E., Trust Across Borders: Buyer-Supplier Trust in Global Business-to-Business E-Commerce. Journal of the Association for Information Systems, 2012, 13(11), pp. 886-922, Available at SSRN: https://ssrn.com/abstract=1334246 or http://dx.doi.org/10.2139/ssrn.1334246

Tat Koon Koh (Contact Author)

Hong Kong University of Science & Technology (HKUST) - Department of Information Systems, Business Statistics and Operations Management ( email )

Clear Water Bay
Kowloon
Hong Kong

Mark Fichman

Carnegie Mellon University - Graduate School of Industrial Administration ( email )

Pittsburgh, PA 15213-3890
United States

Robert E. Kraut

Carnegie Mellon University - David A. Tepper School of Business ( email )

5000 Forbes Avenue
Pittsburgh, PA 15213-3890
United States
412-268-7694 (Phone)
412-268-1266 (Fax)

Carnegie Mellon University - School of Computer Science

5000 Forbes Avenue
Pittsburgh, PA 15213
United States

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