461
Views
0
CrossRef citations to date
0
Altmetric
Articles

Buyer-Side Institution-Based Trust-Building Mechanisms: A 3S Framework with Evidence from Online Labor Markets

, &

References

  • Agrawal, A.; Horton, J.; Lacetera, N.; and Lyons, E. Digitization and the contract labor market: A research agenda. In A. Goldfarb, S.M. Greenstein, and C.E. Tucker (eds.), Economic Analysis of the digital economy. Chicago: University of Chicago Press, 2015, pp. 219–250.
  • Allon, G.; Bassamboo, A.; and Çil, E.B. Large-scale service marketplaces: The role of the moderating firm. Management Science, 58, 10 (2012), 1854–1872.
  • Amblee, N., and Bui, T. Harnessing the influence of social proof in online shopping: The effect of electronic word of mouth on sales of digital microproducts. International Journal of Electronic Commerce, 16, 2 (2011), 91–114.
  • Antle, R., and Eppen, G.D. Capital rationing and organizational slack in capital budgeting. Management Science, 31, 2 (1985), 163–174.
  • Asker, J., and Cantillon, E. Properties of scoring auctions. RAND Journal of Economics, 39, 1 (2008), 69–85.
  • Ba, S., and Pavlou, P.A. Evidence of the effect of trust building technology in electronic markets: Price premiums and buyer behavior. MIS Quarterly, 26, 3 (2002), 243–268.
  • Bajari, P.; McMillan, R.; and Tadelis, S. Auctions versus negotiations in procurement: An empirical analysis. Journal of Law, Economics, and Organization, 25, 2 (2009), 372–399.
  • Bajari, P., and Tadelis, S. Incentives versus transaction costs: A theory of procurement contracts. The RAND Journal of Economics, 32, 3 (2001), 387–407.
  • Beerepoot, N., and Lambregts, B. Competition in online job marketplaces: Towards a global labour market for outsourcing services? Global Networks, 15, 2 (2015), 236–255.
  • Bockstedt, J., and Goh, K.H. Seller strategies for differentiation in highly competitive online auction markets. Journal of Management Information Systems, 28, 3 (2011), 235–268.
  • Brabham, D.C. Moving the crowed at iStockphoto : The composition of the crowd and motivations for participation in a crowdsourcing application. First Monday, 13, 6 (2008). https://firstmonday.org/ojs/index.php/fm/article/view/2159.
  • Caraway, B. Online labour markets: An inquiry into oDesk providers. Work Organisation, Labour & Globalisation, 4, 2 (2010), 111–125.
  • Chen, X.; Huang, Q.; Davison, R.M.; and Hua, Z. What drives trust transfer? The moderating roles of seller-specific and general institutional mechanisms. International Journal of Electronic Commerce, 20, 2 (2015), 261–289.
  • Chong, A.Y.L.; Lacka, E.; Boying, L.; and Chan, H.K. The role of social media in enhancing guanxi and perceived effectiveness of e-commerce institutional mechanisms in online marketplace. Information and Management, 55, 5 (2018), 621–632.
  • Cruz, C.O., and Marques, R.C. Exogenous determinants for renegotiating public infrastructure concessions: Evidence from Portugal. Journal of Construction Engineering and Management, 139(2013), 1082–1090.
  • Cui, G.; Lui, H.-K.; and Guo, X. The effect of online consumer reviews on new product sales. International Journal of Electronic Commerce, 17, 1 (2012), 39–58.
  • Cyert, R., and March, J.G. A Behavioral Theory of the Firm. Englewood Cliffs, NJ: Prentice-Hall, 1963.
  • Dellarocas, C.; Sahoo, N.; and Srinivasan, S. The impact of online product reviews on product returns. Information Systems Research, 29, 3 (2018), 723–738.
  • Fang, Y.; Qureshi, I.; Sun, H.; McCole, P.; Ramsey, E.; and Lim, K.H. Trust, satisfaction, and online repurchase intention: The moderating role of perceived effectiveness of e-commerce institutional mechanisms. MIS Quarterly, 38, 2 (2014), 407–427.
  • Gefen, D., and Pavlou, P.A. The boundaries of trust and risk : The quadratic moderating role of institutional structures. Information Systems Research, 23, 3 (2012), 940–959.
  • Gopal, A.; Sivaramakrishnan, K.; Krishnan, M.S.; and Mukhopadhyay, T. Contracts in offshore software development: An empirical analysis. Management Science, 49, 12 (2003), 1671–1683.
  • Hart, O., and Moore, J. Foundations of incomplete contracts. The Review of Economic Studies, 66, 1 (1999), 115–138.
  • Hart, O.; Moore, J.; Hart, B.Y.O.; and Moore, J. Incomplete contracts and renegotiation. Econometrica, 56, 4 (1988), 755–785.
  • Haruvy, E.; Popkowski Leszczyc, P.T.L.; Carare, O.; Cox, J.C.; Greenleaf, E.A.; Jank, W.; Jap, S.; Park, Y.; and Rothkopf, M.H. Competition between auctions. Marketing Letters, 19, 3 (2008), 431–448.
  • Hong, Y.; and Pavlou, P.A. Online Labor Markets: An Informal “Freelancer Economy.”  IBIT Report, February 2013. Available at SSRN: https://ssrn.com/abstract=2132869 or http://dx.doi.org/10.2139/ssrn.2132869.
  • Hong, Y., and Pavlou, P.A. On buyer selection of service providers in online outsourcing platforms for IT services. Information Systems Research, 28, 3 (2017), 547–562.
  • Hong, Y.; Wang, C.; and Pavlou, P.A. Comparing open and sealed bid auctions: Evidence from online labor markets. Information Systems Research, 27, 1 (2015), 49–69.
  • Horton, J.J., and Johari, R. Buyer Signaling Improves Matching: Evidence from a Field Experiment, October 2018. Available at SSRN: https://ssrn.com/abstract=3245704 or http://dx.doi.org/10.2139/ssrn.3245704.
  • Howe, J. The rise of crowdsourcing. Wired Magazine, 14, 6 (2006), 1–5.
  • Jung, W.; Olfman, L.; Ryan, T.; and Park, Y. An experimental study of the effects of representational data quality on decision performance. AMCIS 2005 Proceedings (2005), 149–154.
  • Karimov, F.P., and Brengman, M. An examination of trust assurances adopted by top internet retailers: unveiling some critical determinants. Electronic Commerce Research, 14, 4 (2014), 459–496.
  • Kendall, C.L., and Russ, F. A. Warranty and complaint policies: An opportunity for marketing management. Journal of Marketing, 39, 2 (1975), 36–43.
  • Kim, H.; Kim, H.; and Lee, P.M. Ownership structure and the relationship between financial slack and R&D investments: Evidence from Korean firms. Organization Science, 19, 3 (2008), 404–418.
  • Kim, J.Y. Online reverse auctions for outsourcing small software projects: Determinants of vendor selection. e-Service Journal, 6, 3 (2009), 40–55.
  • Kokkodis, M.; Papadimitriou, P.; and Ipeirotis, P.G. Hiring behavior models for online labor markets. In Proceedings of the Eighth ACM International Conference on Web Search and Data Mining. New York: ACM, 2015, pp. 223–232.
  • Koufaris, M., and Hampton-Sosa, W. The development of initial trust in an online company by new customers. Information and Management, 41, 3 (2004), 377–397.
  • Lakhani, K.R.; Lohse, P.; Panetta, J.; and Jeppesen, L.B. The value of openness in scientific problem solving. Working Paper no. 07-050 (2007).
  • Lee, S., and Niederle, M. Propose with a rose? Signaling in internet dating markets. Experimental Economics, 18, 4 (2014), 731–755.
  • Li, S.; Srinivasan, K.; and Sun, B. Internet auction features as quality signals. Journal of Marketing, 73, 1 (2009), 75–92.
  • Lin, M.; Liu, Y.; and Viswanathan, S. Effectiveness of reputation in contracting for customized production: evidence from online labor markets. Management Science, 64, 1 (2016), 345–359.
  • Lu, B.; Fan, W.; and Zhou, M. Social presence, trust, and social commerce purchase intention: An empirical research. Computers in Human Behavior, 56(2016), 225–237.
  • Lu, B.; Zeng, Q.; and Fan, W. Examining macro-sources of institution-based trust in social commerce marketplaces: An empirical study. Electronic Commerce Research and Applications, 20(2016), 116–131.
  • Lu, X.; Ba, S.; Huang, L.; and Feng, Y. Promotional marketing or word-of-mouth? Evidence from online restaurant reviews. Information Systems Research, 24, 3 (2013), 596–612.
  • McCune, B., and Grace, J.B. Analysis of Ecological Communities. Gleneden Beach, OR: MjM Software Design, 2002.
  • McKnight, D.H.; Choudury, V.; and Kacmar, C. Developing and validating trust measure for e-commerce: An integrative typology. Information Systems Research, 13, 3 (2002), 334–359.
  • McKnight, D.H.; Cummings, L.L.; and Chervany, N.L. Initial trust formation in new organizational relationships. Academy of Management Review, 23, 3 (1998), 473–490.
  • Moreno, A., and Terwiesch, C. Doing business with strangers : Reputation in online service marketplaces. Information Systems Research, 25, 4 (2014), 865–886.
  • Onsi, M. Factor analysis of behavioral variables affecting budgetary slack. Accounting Review, 48, 3 (1973), 535–548.
  • Ou, C.X.J., and Chan, K.C.C. Developing a competitive edge in electronic markets via institutional and social based quality signaling mechanisms. Information and Management, 51, 5 (2014), 532–540.
  • Pavlou, P.A. Consumer acceptance of electronic commerce : Integrating trust and risk with the technology acceptance model. International Journal of Electronic Commerce, 7, 3 (2003), 101–134.
  • Pavlou, P.A., and Dimoka, A. The nature and role of feedback text comments in online marketplaces: Implications for trust building, price premiums and seller differentiation. Information Systems Research, 17, 4 (2006), 392–414.
  • Pavlou, P.A., and Gefen, D. Building effective online marketplaces with institution-based trust. Information Systems Research, 15, 1 (2004), 37–59.
  • Priest, G.L. A theory of the consumer product warranty. The Yale Law Journal, 90, 6 (1981), 1297–1352.
  • Purohit, D., and Srivastava, J. Effect of manufacturer reputation, retailer reputation, and product warranty on consumer judgments of product quality: A cue diagnosticity framework. Journal of Consumer Psychology, 10, 3 (2001), 123–134.
  • Scholz, M., and Haas, N. Determinants of reverse auction results: An empirical examination of Freelancer.com. In 19th European Conference on Information Systems, ECIS 2011 Proceedings, Helsinki, Finland, June 9–11, 2011.
  • Sharfman, M.P.; Wolf, G.; Chase, R.B.; and Tansik, D.A. Antecedents of organizational slack. The Academy of Management Review, 13, 4 (1988), 601–614.
  • Simon, H.A. The Science of Artificial. Cambridge, MA, USA: MIT Press, 1969.
  • Snir, E.M.; and Hitt, L.M. Costly bidding in online markets for IT services. Management Science, 49, 11 (2003), 1504–1520.
  • Spence, M. Job market signaling. The Quarterly Journal of Economics, 87, 3 (1973), 355–374.
  • Sun, H. Sellers’ trust and continued use of online marketplaces. Journal of the Association for Information Systems, 11, 4 (2010), 182–211.
  • Tan, J., and Peng, M.W. Organizational slack and firm performance during economic transitions: two studies from an emerging economy. Strategic Management Journal, 24, 13 (2003), 1249–1263.
  • Yang, Y.; Chen, P.-Y.; and Pavlou, P.A. Open innovation: An empirical study of online contests. In ICIS 2009 Proceedings. 2009, pp. 1–16. Phoenix, Arizona, USA; AIS Electronic Library (AISeL).
  • Yang, Y.; Chen, P.; and Pavlou, P. Open innovation: Strategic design of online contests. Workshop of Information Systems and Economics (2009), 1–9.
  • Yoganarasimhan, H. The value of reputation in an online freelance marketplace. Marketing Science, 32, 6 (2013), 860–891.
  • Zheng, A.Z.; Hong, Y.; and Pavlou, P.A. Matching in Two-Sided Platforms for IT Services : Evidence from Online Labor Markets. 2016. Available at SSRN: https://ssrn.com/abstract=2838720 or http://dx.doi.org/10.2139/ssrn.2838720.
  • Zheng, H.; Li, D.; and Hou, W. Task design, motivation, and participation in crowdsourcing contests. International Journal of Electronic Commerce, 15, 4 (2011), 57–88.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.