Coercive and legitimate power in the sharing economy: Examining consumers’ cooperative behavior and trust

Abstract

• Coercive and legitimate power are used in the sharing economy. • Legitimate power has an impact on cooperative consumer behavior and trust. • Coercive power has an impact depending on the form of organization. • Sharing economy should invest in legitimate power but be careful with coercive power. Sharing economy organizations depend on customer cooperation. According to the existing theory, namely, the extended slippery slope framework, coercive and legitimate power are two means of achieving cooperation and trust. Based on this theory, we examine the role of coercive and legitimate power in the sharing economy in four studies. Study 1 has examined the extent of existing sharing organizations’ coercive and legitimate power (B2C, P2P, and communities) by employing website analysis. In Study 2, consumers have discussed which forms of power (coercive or legitimate) were perceived by sharing organizations in focus groups. Study 3 has investigated the impact of coercive and legitimate power on consumer cooperation in a laboratory experiment using a give-or-take-some (GOTS) game. Study 4 has examined the impact of coercive and legitimate power on cooperation using an experimental online questionnaire. We find that providers of sharing economy services highlight coercive measures on their websites, whereas consumers in the focus group discussions highlight the importance of legitimate power, as is evident in the experiments. Thus, while sharing organizations could increase their use of legitimate power, they should apply coercive power carefully.