How Can SMEs Boost Trust Through Third-Party Means? Tracing the Multi-Dimensional Institutional Basis of Online Trust

Cong Cao · Shanshan Huang

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Technology Adoption and User Behaviour Digital Marketing and Social Media Privacy, Security, and Data Protection

Abstract

Consumers are reluctant to engage in e-commerce, due in part, to a lack of trust in the e-merchants, in the e-commerce technology and in the business process. Few prior studies investigating consumers’ trust behaviour in relation to e-retailers have addressed different combinations of third-party services and third-party platforms. However, the importance of both of these to the cross-border e-commerce market is self-evident. This paper aims to explore the development of institutional trust in platforms based on the level of the third-party services provided and ultimately, to develop a complete study of online transaction intentions as driven by the platform institutions. An online survey was conducted to collect the data, and 445 respondents completed and returned the questionnaire. Based on the structure of the data, partial least squares structural equation modelling was used to assess the effects of specific factors on institutional trust and on initial trust. Preliminary findings suggest that third-party logistics, payments and certification significantly enhance consumers’ trust in an online platform system and in turn, their trust in the e-retailers. Furthermore, the perceived usefulness of a platform and the trustworthiness of word-of-mouth comment can both significantly influence online trust. The study builds an extended online trust model to explore in greater detail. On the one hand, the model will enable platform management to understand users’ demands for third-party services better and so improve the platform system. On the other hand, the model can help e-retailers to form a comprehensive understanding of the third-party platform system, and it can guide them in making use of a platform to improve their sales performance.

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1981Evaluating Structural Equation Models with Unobservable Variables and Measurement Error 1989Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology 1989User Acceptance of Computer Technology: A Comparison of Two Theoretical Models 2000A Theoretical Extension of the Technology Acceptance Model: Four Longitudinal Field Studies 2015A primer on partial least squares structural equation modeling (PLS-SEM)1973Job Market Signaling 2012Consumer Acceptance and Use of Information Technology: Extending the Unified Theory of Acceptance and Use of Technology1 1995An Integrative Model Of Organizational Trust

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