Initial Trust Formation Research Articles

How do employees form initial trust in artificial intelligence: hard to explain but leaders help

This study experimentally investigates initial trust formation in the organizational context of an artificial intelligence (AI) system in human resource management (HRM). Drawing on social exchange theory and leader‐member exchange theory, we identify factors that contribute to initial trust in AI through cognitive and affective processing from the perspective of employees in the Chinese context. An online survey (N = 426) was conducted with a 2 (explanation of AI: without vs with) × 2 (trust in leaders: low vs high) design. Our findings demonstrate that initial trust plays a crucial role in AI adoption, and a trustworthy leader increases employees' AI trust and intention to adopt. Providing AI's benefits and risks moderates initial trust and the pathway to adoption. Moreover, familiarity with AI's application in HRM and organizational collectivism is also beneficial. Our findings suggest that organizations should prioritize cultivating initial trust in AI with employee‐oriented strategies, including trusted leadership and supportive training resources.

A signaling theory-based analysis of website features, investment perception and trust propensity in initial trust formation on unfamiliar small online retailers

ABSTRACT Unfamiliar online retailers far exceed the number of familiar stores, yet they lack consumer trust that may result in lower sales and, ultimately, failure. This study develops and tests a conceptual framework using the signaling theory to understand how marketing signals of the website features influence consumer website investment perception and initial trust formation in unfamiliar small online retailers. Path analysis reveals that the indirect effect of website investment furnishes insights into the differential impact of website features on initial trust formation. Results also show that lower trust propensity significantly dampens initial trust formation in a low-investment situation. The study provides implications for practice and directions for future research.

Consumer Trust in Digital Banking: A Qualitative Study of Legal and Regulatory Impacts

The shift towards digital banking has significantly transformed the financial landscape, necessitating a deeper understanding of the factors influencing consumer trust. This study aims to explore how legal and regulatory frameworks, coupled with perceived security measures, impact consumer trust in digital banking services. A qualitative research design was employed, using semi-structured interviews to gather data from 30 participants who use digital banking services. Participants were selected through purposive sampling to cover a broad demographic range. Data were collected to achieve theoretical saturation and analyzed using NVivo software to identify emerging themes and patterns. The analysis revealed three main themes: Regulatory Impact, Perceived Security, and Consumer Trust Dynamics. Regulatory Impact included categories such as Compliance Standards, Consumer Protection Policies, Transparency, and Enforcement and Penalties. Perceived Security was detailed through Technological Safeguards, Risk Management, User Experience, and Data Management. Consumer Trust Dynamics comprised Initial Trust Formation, Trust Maintenance, Impact of Negative Experiences, Role of Peer Influence, and Long-term Relationship Building. The study concluded that a robust legal and regulatory framework, effective security measures, and dynamic trust-building practices are pivotal in fostering consumer trust in digital banking. Transparent regulations, advanced security technologies, and proactive customer relationship management are essential for banks to maintain and enhance trust among users.

Initial trust formation on shared autonomous vehicles: Exploring the effects of personality-, transfer- and performance-based stimuli

Building initial trust is critical for the acceptance of shared autonomous vehicles (SAVs). Initial trust determines whether this emerging mobility solution will be accepted when it is available in the market. This study examines the initial trust formation process in the context of SAVs using the elaboration likelihood model and trust transfer theory. It investigates the effects of different personality-based, transfer-based, and performance-based factors on initial trust and adoption intention. A structural equation modelling is conducted in Singapore based on valid survey design principles, sampling protocols, and data analysis procedures. Results show that among three trust-building paths, the performance-based factors which include SAV capability and interaction quality are the most important. The transfer-based (i.e., trust in shared mobility) and personality-based factor (i.e., trust propensity) rank second and third, respectively. Six moderators such as covid history and shared mobility experience are also tested to investigate significant differences in the results. Based on these findings, this study offers theoretical and policy implications for scholars and practitioners.

Toward the adoption of digital assistive technology: Factors affecting older people's initial trust formation

In recent decades, Europe has experienced a major societal challenge—the aging of the human population. The Finnish government has responded to this challenge by focusing on individually tailored services that enable older adults to live independently and comfortably at home for longer with the help of digital assistive technology. This paper presents the findings of an empirical study on how initial trust is formed with regard technology adoption by older people. Four bases of trust (personality, cognitive, calculative, and institutional) underpin the theoretical framework of the study. A qualitative research approach was adopted, utilizing individual and focus group interviews with older people living independently in urban and rural areas of South Finland. The findings derived from thematic analysis offer new insights into the complex and multidimensional process of older people's initial trust formation, which is affected by an interplay of 12 identified factors shaping the four bases of trust and four supplementary factors. These findings lead to propositions for future research.

Comparing the Emotional and Cognitive Components of Initial Trust Formation in Air Traffic Controller-Autonomy Teams

The use of intelligent decision aids in Air Traffic Management is recommended to manage the exponential rise in global air traffic. Consequently, trust, which is one of the main drivers of how Air Traffic Controllers use such decision aids, has become an important area of research. It has been suggested that there is a strong emotional influence in the formation of Human-Human Trust, and it is unclear if this paradigm is valid for Human-Autonomy Trust. The extent of the cognitive and emotional components in the initial trust relationship between Air Traffic Controllers and a simulated conflict detection autonomous decision aid was examined with the use of functional Magnetic Resonance Imaging. The results confirmed that the emotional component showed higher activation than the cognitive component for the initial formation of trust between Air Traffic Controllers and autonomous decision aids.

Acceptance, initial trust formation, and human biases in artificial intelligence: Focus on clinicians.

Acceptance, initial trust formation, and human biases in artificial intelligence: Focus on clinicians.

Why do users trust algorithms? A review and conceptualization of initial trust and trust over time

Algorithms are increasingly playing a pivotal role in organizations' day-to-day operations; however, a general distrust of artificial intelligence-based algorithms and automated processes persists. This aversion to algorithms raises questions about the drivers that lead managers to trust or reject their use. This conceptual paper aims to provide an integrated review of how users experience the encounter with AI-based algorithms over time. This is important for two reasons: first, their functional activities change over the course of time through machine learning; and second, users' trust develops with their level of knowledge of a particular algorithm. Based on our review, we propose an integrative framework to explain how users’ perceptions of trust change over time. This framework extends current understandings of trust in AI-based algorithms in two areas: First, it distinguishes between the formation of initial trust and trust over time in AI-based algorithms, and specifies the determinants of trust in each phase. Second, it links the transition between initial trust in AI-based algorithms and trust over time to representations of the technology as either human-like or system-like. Finally, it considers the additional determinants that intervene during this transition phase.

To trust or not to trust? An assessment of trust in AI-based systems: Concerns, ethics and contexts

Artificial intelligence (AI) characterizes a new generation of technologies capable of interacting with the environment and aiming to simulate human intelligence. The success of integrating AI into organizations critically depends on workers' trust in AI technology. Trust is a central component of the interaction between people and AI, as incorrect levels of trust may cause misuse, abuse or disuse of the technology. The European Commission's High-level Expert Group on AI (HLEG) have adopted the position that we should establish a relationship of trust with AI and should cultivate trustworthy AI. This article investigates the links between trust in AI, concerns related to AI use, and the ethics related to such use. We used data collected in 2019 from more than 30,000 individuals across the EU28. The data focuses on living conditions, trust, and AI uses and concerns. An econometric model is used. The endogenous variable is an ordered measure of trust in AI. We use an ordered logit model to highlight the factors associated with an increased level of trust in AI in Europe. The results show that many concerns related to AI use are linked to AI trust, and the ability to try out AI applications will also have an impact on initial trust. To enhance trust, practitioners can try to maximize the technological features in AI systems. The representation of the AI as a humanoid or a loyal pet (e.g., a dog) will facilitate initial trust formation. Moreover, findings reveal an unequal degree of trust in AI across countries.

The formation of initial trust by potential passengers of self-driving taxis

ABSTRACT Despite a current level of uncertainty, taxi service companies are incorporating autonomous cars in their services. This study examines factors influencing consumers' initial trust in autonomous taxis to extend trust model research and develop a new model in autonomous taxis. The new model examines the influence of trust base factors and subjective norms on three constructs. It assesses eight trust base factors of cognitive, personality, calculative, and institutional categories. Findings indicate that faith in intelligent machines, calculative cost/benefit perception, perceived societal benefits, organizational situation normality, and technology structural assurance are potential indicators of consumers' trusting beliefs in this context. Data was collected from undergraduate students and future research should test the model with other populations to determine if differences among groups exist. The study makes significant contributions to both theory and practice by extending the initial trust model and examining trusting factors in the context of autonomous taxis.

An Exploration of Antecedents of Initial Trust in M-Payments

This study aims to investigate factors influencing the formation of consumers' initial trust in m-payments in a developing country such as India. Despite being considered a significant pre-adoption factor, initial trust in m-payments has remained underexplored. To fulfill this research gap, a cross-sectional survey of 1,087 respondents has been conducted, and the analysis has been done using factor analysis and structural equation modeling. Results indicate that consumers' awareness about m-payments and perceived integrity of mobile service providers positively influence initial trust, whereas perceived risks have a significant negative influence, and perceived opportunism of service provider has a marginally significant influence on the formation of initial trust. The findings will be helpful to the m-payment vendors, mobile network operators, and technology providers to enhance trust-building mechanisms in mobile payment systems that can have a positive impact on the adoption and usage of m-payments.

Impact of Quality of Unfamiliar Shopping App on Initial Trust Formation: A Moderated Mediation of Risk Attitude

Today, all phases of consumers' buying process from pre-information search, evaluation of alternatives, order placing and post-purchase service are conducted in shopping apps installed in smartphones. A shopping app is omnipresent and is a powerful retail channel for retailers all over the world. However, the primary concern for many customers is that online shopping is not secure. This insecurity is more if customers have to purchase from an unfamiliar shopping app. Customers generally hesitate to purchase using unfamiliar shopping apps, unless they feel that the app is trustworthy. Based on the survey of 264 respondents, this study attempts to measure the impact of the quality of unfamiliar shopping apps on initial trust formation and subsequently, purchase intention. An attempt was also made to study the moderated mediation impact of risk attitude on the relationship between shopping app quality and initial trust formation. The findings of this paper may be of practical use for the online retailers by providing a better understanding of the adoption of unfamiliar shopping apps among prospective customers. It will also provide strategic inputs to online retailers to craft suitable strategies for the adoption of unfamiliar shopping apps.

Understanding Dynamics of Initial Trust and its Antecedents in Password Managers Adoption Intention among Young Adults

Abstract Security professionals often suggest password managers as one of the best measures for the end-users. However, the end-users have shown reluctance in adopting them, mostly due to the trust factor. The purpose of the paper was to examine the relationship of initial trust, and it’s antecedents with the password manager’s adoption intention. In this regard, using the Initial Trust Model as a framework, data from 289 respondents (age 18-35) were collected through a crowdsourcing website and analyzed using structural equation modeling (SEM) in SmartPLS 3.2. Results show that initial trust has a significant effect on the intention to adopt a password manager. In initial trust formation, firm reputation and structural assurances play a significant role, whereas personal propensity to trust does not significantly relate to initial trust. Moreover, firm reputation and structural assurances indirectly affect intention to adopt password managers.

Exploration of Influencing Factors on Mechanism of Chinese Users' Continuous Trust in Transactional Virtual Community

This paper studies the formation path of user trust in transactional virtual community, explores the relationship between website perception, merchant reputation and user's personal trust tendency and user's initial trust, and introduces the characteristics of internet word of mouth and sense of virtual community into the analysis framework from initial trust to continuous trust. This research used a quantitative design by developing questionnaires to collect data through the snowball sampling approach from 390 Chinese users of the well-known transactional virtual communities as research population, such as JD community, Dianping community, Tmall community, Xiaomi Forum, Dangdang - online reading community, etc. The results show that users' website perception, merchant reputation and personal trust tendency these three factors have significant positive effects on the formation of initial trust of users. And merchant reputation played the most important role in influencing initial trust of users than any two factors, followed by user's trust tendency and website perception. Besides, initial trust of users was shown to has a significant positive effect on continuous trust of users in transactional virtual community. Furthermore, the characteristics of internet word of mouth was found have significant mediation effect on initial trust and continuous trust of users. More specifically, 41.7% of the influence of the initial trust on the continuous trust was due to the internet word-of-mouth. The findings of this study provide transactional virtual community marketers and managers’ valuable insights into developing effective marketing strategies to improve their community’s service.

Provable Transactions: Exploring the Boundaries of Trust in Smart Contracts on Blockchains

Trust is generally considered a precondition for successful transactions. Yet, it becomes dispensable if a party can ex-ante comprehend and ascertain the mechanism by which its counterpart will fulfill its contractual obligations; in that case, the focal party can obtain proof and trust is replaced by certainty. We refer to such transactions as provable, and extend the theory of trust by developing a three-layer model of initial trust formation for settings involving provable transactions. We test our model using a sample of 536 smart contracts deployed on the Ethereum blockchain. Smart contracts are immutable, publicly visible, and automatically executed computer protocols which allow to ex-ante verify the outcome of a transaction and thus hold the promise of facilitating provable transactions. With a moderated regression model, we test which trust layer is responsible for trust formation and on which factors this formation is contingent. Our findings suggest that blockchain and smart contracts do not remove the necessity of trust from transactions but introduce a new type of trust which reinforces classical trust cues.

Point of adoption and beyond. Initial trust and mobile-payment continuation intention

Initial trust represents the trust that develops upon first use of a product. It is built on the basis of the net effect of factors that stimulate as well as inhibit it. Future transactions require less consumer effort after initial-trust formation. Despite being recognized as an important factor affecting the adoption of innovations, initial trust has been not been greatly explored by prior scholars. The present study remedies this gap by invoking the information systems success (ISS) model, transaction cost economics (TCE) theory, and the IT continuance model to propose a two-step framework that includes the antecedents of a pre-adoption factor, such as initial trust, and post-adoption factors, such as confirmation, perceived usefulness, satisfaction, and continuation intention toward mobile-based payments. Cross-sectional data of 954 first-time mobile-wallet users are analyzed to test the framework. The study findings suggest that information and service quality positively influence initial trust, which, in turn, has a positive association with confirmation and perceived usefulness. Results also reveal a positive relationship between perceived usefulness and continuation intention. These results pave the way for making useful recommendations for future researchers. The study also discusses various inferences that can improve managerial efficacy in promoting the use of mobile-based payment methods.

Group behavior in social media: Antecedents of initial trust formation

This study investigates the influence of antecedents of user trust amongst peers on social media platforms that they apply without sufficient cognitive judgment. Based on extensive literature review and analysis of social theories, we propose a theoretical framework for social media trust (SMT). Based on the SMT model, we conduct empirical analysis using structural equation modeling to verify the cause-effect relationships hypothesized in this study. The findings reveal that initial formation of SMT relies on five predictors - fulfilled expectations, predictability, familiarity, monitor, and norms. These findings have significant theoretical and practical implications. The study finds that peers are likely to invest blind faith in the content shared on social media groups without subjecting it to verification. It also identifies the threat of biased peers, who spread irresponsible content with predetermined motives to influence members of certain social media groups. Policymakers can use insights from this study to highlight the ills of non-verification, and its potential to cause harm at the very extreme.

In crowdfunding we trust: A trust-building model in lending crowdfunding

ABSTRACTTrust critically affects the perceived probability of receiving expected returns on investment. Crowdfunding differs in many ways from traditional forms of investing. We have to ask what builds trust in this particular context. Based on literature regarding the formation of initial trust, we developed a model to explain which factors lead to crowdfunders’ trust in a crowdfunding project. We tested it on data collected from actual investors in a real project on a crowdlending platform. Our results show that trust in the crowdfunding platform and the information quality are more important factors of project trust than trust in the creator.

Consumer’s initial trust formation in IOB’s acceptance

Purpose The purpose of this paper is to explore how variables like propensity to trust, website usability, social influence, customer awareness about internet-only banks (IOBs) and perceived compatibility influence customers’ initial trust formation toward IOBs’ acceptance. The model is based on the technology acceptance model, diffusion of innovation theory and theory of reasoned action. Design/methodology/approach A non-probability convenience sample of 239 IOBs’ potential adopters from France was used to test the structural equation model between initial trust antecedents and IOB’s usage intention. Findings Findings confirm the important role of trust in initiating customers’ relationship with IOBs and show that social influence, compatibility and website usability contribute the most to IOB’s initial trust formation. Indeed, it has been found that the level of consumer information about IOBs and propensity to trust have a moderate impact on consumer’s initial trust. Results revealed that there is a general lack of consumer’s awareness about IOB’s services features. Practical implications To promote the trustworthiness of their sites and services to potential consumers, IOBs should enhance WOM by using social network applications. IOBs need to develop marketing communication campaigns in which they can educate potential customers about IOB’s features. In addition, IOBs should demonstrate to their customers that IOBs’ banking system is consistent with their current lifestyle. IOBs are encouraged to develop a favorable impression by investing heavily on their website usability and information design. Originality/value This study contributes significantly to the marketing research literature related to consumer trust and electronic banking literature. Indeed, only a few marketing studies have been conducted about IOBs. The results show the role played by initial trust formation in the case of IOBs. In addition, it points out the importance of five trust cues: individual cues, knowledge cues, institutional cues, cognitive cues and social cues (social influence).

Developing and maintaining clients’ trust through institutional mechanisms in online service markets for digital entrepreneurs: A process model

Crowdsourcing intermediaries, such as Upwork and ZBJ, are powering a new force of digital entrepreneurs by creating online service markets where service providers seek contracts from clients all over the world. An important reason for this flourishing digital entrepreneurship is that the intermediaries establish institutional mechanisms (IMs) that develop clients’ trust in digital entrepreneurs. However, insights into how intermediaries achieve it remain limited. Although the e-Commerce literature has generated rich findings on intermediary-based trust development, its findings are based on online product markets and thus may not be readily applicable to online service markets. More specifically, these findings are mainly focused on various IMs that facilitate initial trust formation based on variance models. However, a successful service transaction requires not only the initial trust but further development and maintenance of that trust, because it is a cooperative process between clients and vendors. By conducting an in-depth case study of ZBJ, the largest crowdsourcing intermediary in China, this study develops a three-phase process model, whereby the intermediary deploys different sets of IMs that initiate, augment, and maintain clients’ trust in vendors. Our findings make important theoretical contributions to the literature on digital entrepreneurship, crowdsourcing, and e-Commerce trust development.