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Trust and Risk in Business Networks: Towards a Due Diligence for Electronic Commerce

By Melanie Fritz


This paper develops a due diligence for electronic transactions with new partners in business networks with complex goods such as food products to enable the use of e-commerce potentials in first time transactions. The e-commerce due diligence is a means to reduce perceived risks and uncertainties for businesses and create trust and confidence in the electronic transaction with appropriate information. The paper presents a conceptual framework for the due diligence integrating the principles of transaction decision making and the four phases of a transaction process. The operationalization of the framework assigns trust signals and control elements to the four process phases to be communicated during the process.Trust, risk, electronic commerce, first time transactions, due diligence, food networks, Agribusiness, Institutional and Behavioral Economics, Marketing,

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