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

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,

Building consumers’ confidence in adopting e-commerce: A Malaysian case

Consumers’ confidence on the online transactions is vital for the continuous growth and development of electronic commerce. In the present study, we experimentally investigate the measures of consumers’ perceived security and privacy over online transactions as well as the perceived trust and reliability of online vendors in order to influence consumers’ overall confidence in e-commerce transactions. On the basis of responses from 163 participants, it is concluded that the major concerns in e-commerce adoption are: security and privacy over online transaction process and trust and reliability of online vendors. In order to be successful in electronic marketplace, the organisations are expected to expend their resources and exert efforts to ensure that consumers’ concerns are adequately addressed.e-commerce; security and privacy; trust; online vendors; consumer behaviour; Malaysia

Assuring E-Commerce Business Activities

Trust is imperative for conducting online transactions. To reduce online risks and foster trust, assurance service providers, such as TRUSTe, BBBonline, and WebTrust, audit online businesses to assure their compliance with principles and criteria for e-commerce business activities. Of these assurance service providers, WebTrust offers the most comprehensive services, including programs for business to consumer and business to business transactions, certification authorities (CA) and service providers. WebTrust jointly developed by the American Institute of Certified Public Accountants (AICPA) and the Canadian Institute of Chartered Accountants (CICA) offers best practices and a framework of measurable controls for electronic businesses, and thus, fosters online trust and confidence that are critical to the success of electronic commerce. As e-commerce matures, WebTrust will play an increasingly important role in CA-based e-commerce as well as in the applications service provider industry

Trust and Social Commerce

Internet commerce has transformed the marketing of goods and services. The separation between point of sale and seller, and the presence of geographically dispersed sellers who do not engage in repeated transactions with the same customers challenge traditional mechanisms for building the trust required for commercial exchanges. In this changing environment, legal rules and institutions play a diminished role in building trust. Instead, new systems and methods are emerging to foster trust in one-shot commercial transactions in cyberspace. The Article focuses on the rise of “social commerce,” a socio-economic phenomenon centered on the use of social media and other modes of social connection in electronic commerce. It identifies three mechanisms that are central to the development of trust in social commerce: communication and voluntary disclosure; barriers to entry; and community policing. These mechanisms simulate the characteristics of closely-knit environments, creating conditions conducive to trust. The Article describes these mechanisms in four new commercial settings: the sharing economy; next generation electronic commerce; online escort services; and online black markets in credit cards and controlled substances

Developing a Framework for Exploring Factors Affecting on Trust in M-Commerce using Analytic Hierarchy Process

Mobile Commerce is a developing and maturing area of electronic Commerce, where customers andvendors can interact via the service providers through a wireless network and mobile devices forinformation retrieval and transaction processing. In mobile transactions trust is an essential constituent inmobile commerce transactions .This study aims to clarify the factors that affect on trust in mobilecommerce, and then evaluate and asses these factors by AHP method. This paper provides a theory basedframework that helps to customers to make a right decision while they would like to shop via mobilefacilities in mobile browsers. For this purpose the contribution of different scientific approaches isexamined. By combining these approaches a framework for the classification is derived for trust model.Keywords: AHP method, Mobile Commerce, Trust, Security

Trust and Social Commerce

Internet commerce has transformed the marketing of goods and services. The separation between point of sale and seller, and the presence of geographically dispersed sellers who do not engage in repeated transactions with the same customers challenge traditional mechanisms for building the trust required for commercial exchanges. In this changing environment, legal rules and institutions play a diminished role in building trust. Instead, new systems and methods are emerging to foster trust in one-shot commercial transactions in cyberspace. The Article focuses on the rise of “social commerce,” a socio-economic phenomenon centered on the use of social media and other modes of social connection in electronic commerce. It identifies three mechanisms that are central to the development of trust in social commerce: communication and voluntary disclosure; barriers to entry; and community policing. These mechanisms simulate the characteristics of closely-knit environments, creating conditions conducive to trust. The Article describes these mechanisms in four new commercial settings: the sharing economy; next generation electronic commerce; online escort services; and online black markets in credit cards and controlled substances

THE INVESTIGATION OF THE FACTORS ASSOCIATING CONSUMERS’ TRUST IN E-COMMERCE ADOPTION

The success of electronic commerce significantly depends on providing security and privacy for its consumers’ sensitive personal information. Consumers’ lack of acceptance in electronic commerce adoption today is not merely due to the concerns on security and privacy of their personal information, but also lack of trust and reliability of web vendors. Consumers’ trust in online transactions is crucial for the continuous growth and development of electronic commerce. Since Business to Consumer (B2C) e-commerce requires the consumers to engage the technologies, the consumers face a variety of security risks. This study addressed the role of security, privacy and risk perceptions of consumers to shop online in order to establish a consensus among them. The findings provided reliability, factors analysis for the research variables and for each of the study’s research constructs, correlations as well as regression analyses for both non-online purchasers’ and online purchasers’ perspectives, and structural equation modeling (SEM) for overall model fit. The overall model was tested by AMOS 18.0 and the hypothesis, assumptions for SEM and descriptive statistics were analyzed by SPSS 12.0. The empirical results of the first study indicated that there were poor correlations existed between consumers’ perceived security and consumers’ trust as well as between consumers’ perceived privacy and consumers’ trust regarding e-commerce transactions. However, the construct of perceived privacy manifested itself primarily through perceived security and trustworthiness of web vendors. While trustworthiness of web vendors was a critical factor in explaining consumers’ trust to adopt ecommerce, it was important to pay attention to the consumers’ risk concerns on ecommerce transactions. It was found that economic incentives and institutional trust had no impact on consumers’ perceived risk. Findings from the second study indicated that perceived privacy was still to be the slight concern for consumers’ trust in e-commerce transactions, though poor vi i relationships or associations existed between perceived security and consumers’ trust, between trustworthiness of web vendors and consumers’ trust, and between perceived risk and consumers’ trust. The findings also showed that the construct of perceived privacy manifested itself primarily through perceived security and trustworthiness of web vendors. It was found that though economic incentives influenced a consumers’ perceived risk in online transactions, institutional trust had no impact on consumers’ perceived risk. Overall findings suggested that consumers’ perceived risk influenced their trust in e-commerce transactions, while the construct of perceived privacy manifested itself primarily through perceived security as well as trustworthiness of web vendors. In addition, though economic incentives had no impact on consumers’ perceived risk, institutional trust influenced a consumers’ perceived risk in online transactions. The findings also suggested that economic incentives and institutional trust had relationships or associations with consumers’ perceived privacy. The findings from this research showed that consumers’ perceived security and perceived privacy were not mainly concerned to their trust in e-commerce transactions though consumers’ perceived security and perceived privacy might slightly influence on the trustworthiness of web vendors in dealing with online store sites abroad. Furthermore, consumers’ perceptions on the trustworthiness of web vendors were also related to their perceived risks and the concern about privacy was also addressed to perceived risks. Index terms: Perceived security; perceived privacy; perceived risk; trust; consumers’ behaviour; SE

Evaluating e-commerce trust using fuzzy logic [article]

Trust is widely recognized as an essential factor for the continual development of business to customer electronic commerce (B2C EC). Many trust models have been developed, however, most are subjective and do not take into account the vagueness and ambiguity of EC trust and the customers’ intuitions and experience when conducting online transactions. In this article, we develop a fuzzy trust model using fuzzy reasoning to evaluate EC trust. This trust model is based on the information customers expect to find on an EC Website and is shown to increase customers trust towards online merchants. We argue that fuzzy logic is suitable for trust evaluation as it takes into account the uncertainties within e-commerce data and like human relationships; it is often expressed by linguistics terms rather then numerical values. The evaluation of the proposed model will be illustrated using two case studies and a comparison with two evaluation models was conducted to emphasise the importance of usin fuzzy logic

Analisis Terhadap Perilaku Bertransaksi Online Pengguna Facebook Commerce

The concept of electronic commerce is widely used today's society, or better known as e-commerce, information technology was born as globalization in economics. Social networking is one of the media of electronic commerce, which currently has a lot of users. The purpose of this study was to examine factors that influence e-commerce user on social networks, one of which is the facebook for online transactions. Data analysis performed in this study using multiple linear regression techniques to look at the variables that affect behavior variables commerce facebook users either partially or simultaneously. The results of this study are expected to provide empirical evidence about the factors that influence the behavior of users of facebook commerce in conducting online transactions. In addition the test results are also expected to give evidence about the dominant factors that influence user behavior in online transactions through social networking media. Keywords: Perception of Service Quality, Perceived Ease, Perceived Trust worthiness, User Behavior, Facebook Commerce, Online Transactions