E-commerce risk management in the logistics Industry: An Integrative Analytical Framework for Understanding Consumer Behavior

Abstract

Early studies have paid particular attention to the control of alliances to cover the risks of differing objectives between firms in an exchange relationship (Nooteboom, Berger, & Noorderhaven, 1997). It has been suggested that the use of formal control mechanisms may enhance a trusting relationship by narrowing down the domain and severity of risk (Poppo & Zenger, 2002). Hence, for effective alliance performance, partner firms need to manage this risk adequately by understanding the conjoint roles of trust and control. This paper aim to develop a comprehensive and integrative framework of trust, control, and risk in the context of logistics industry. Trust and control are inextricably interlinked with risk in supply chain. Therefore, to understand how logistic firms can effectively reduce and manage this risk, we need to examine the inter-relationships between trust, control, and risk. This study aims to identify the e-commerce risk reduction approaches-minimizing relational risk through goodwill trust, behavior control, and social control, while minimizing performance risk through competence trust, output control, and social control.