Advances in Enterprise Information Systems II – Møller & Chaudhry (eds)
© 2012 Taylor & Francis Group, London, ISBN 978-0-415-63131-0
Significance of trust in reputation building mechanisms
Radoslav Delina, František Janke & Michal Tkáˇc
Technical University of Kosice, Faculty of Economics, Košice, Slovakia
ABSTRACT: The trust is an important antecedent of effective inter-organisational collaboration.
Effective electronic collaboration requires implementation of suitable trust building mechanisms.
The paper analyses a part of trust building mechanisms – reputation building mechanisms and
examinescompanies’levelof trust in each of these mechanisms. Companies’level of trustwas inves-
tigated in two samples, which differ in their international skills. Although different levels of trust
into particular reputation building mechanisms were recognized, significant difference between
samples was not observed. Also the perception of trust in reputation building mechanisms in com-
parison with other trust building mechanisms was explored. It was found that reputation building
mechanisms are most trusted within the portfolio of all identified trust building mechanisms.
Keywords: Trust, Reputation, Electronic Business Platform, Cooperation
In electronic commerce and generally in networked business informatics, trust and security have
received significant attention as their presence enhances growth in this area of business. The
Commission of the European Communities (1997) claimed that the building of confidence and
trust is essential in order to persuade consumers and businesses to adapt ecommerce. Concretely,
these entities must be convicted that their transactions will not be intercepted or altered that sellers
as well as the purchasers own the identity they declare to have and that the transaction mechanisms
are available, secure and legal.
Although some experts (e.g. Doucek, 2008) examine trust only from security aspect, the trust
has been often proclaimed as a valuable socio-economic asset. It has been described as an impor-
tant driver of effective inter-organisational collaboration. In several studies (Dore, 1983; Barney &
Hansen, 1995; Dyer, 1997; Nachira, 2010), trust is considered as the factor which reduces trans-
action costs and enables greater flexibility to respond to changing market conditions. Together, it
leads to exceptional information sharing procedures which enhance coordination and joint efforts
to reduce inefficiencies (Nishiguchi, 1990; Clark & Fujimoto, 1991; Aoki, 1998; Gavurova, 2010),
and allocates investments in transaction or relation-specific assets which increases the productivity
(Lorenz, 1988; Asanuma, 1989; Dyer, 1997). Moreover some studies (North, 1990; Casson, 1991;
Fukuyama, 1995; Hill, 1995) imply that economic efficiency of a nation is highly correlated with
the existence of highly trusted institutional environment. As one of many examples Fukuyama
(1995) can be presented. He asserts that the economic achievements of nation rely on the level of
inherent trust in the society.
Other studies (Jones et al., 2000; Raisch, 2001; Farhoomand & Lovelock, 2011) contend that
trust is an essential for e-commerce to reach its full potential.
As Lee & Turban (2001) claimed in many market surveys insufficient trust represent the most
common answer to questions concerning consumers’ unwillingness to shop online. Consumers’
lack of trust could have several explanation, for example online sellers sometimes provide only a
few information about themselves and are not well known to the consumers, secondly purchasers
in online environment are unable to conduct physical examination of goods before purchase and
therefore must rely on information provided by online sellers, which wants to sell the product.