Inter-Organizational-Trust in Business to Business E-Commerce

Abstract

This study seeks to understand inter-organizational-trust as an antecedent factor in adoption of and participation in e-commerce. Exploratory research together with a literature review paved the way to the development of a conceptual model. The model was tested via four case studies consisting of a large public sector organization and three small-medium enterprises (SMEs) involved in customs clearance. SMEs included an Internet service provider, a customs broker (agent), and an importer. Data was collected via indepth interviews, discussions with key personnel, and from existing documents. The findings strongly indicate that inter-organizational trust is important for e-commerce participation, as organizations need to cooperate, collaborate, and communicate timely and relevant information in order to facilitate e-commerce. This entails not only technological proficiencies, but also trust between trading parties, so that business transactions are sent and received in an orderly fashion.