Inter-organisational Trust in Business-to-Business E-Commerce in Australia

This research investigated the importance, development, influences and benefits of interorganisational trust in business-to-business e-commerce. Using a case study approach, seven informants from four Tasmania-based organisations were interviewed. The informants considered trading partner trust extremely important and a prerequisite to electronic and traditional trading relationships. The most important finding was informant’s perception that trust is no more important in an online environment than in an offline environment. Collaborative relations such as communication and repeated interactions were facilitators of development of trading partner trust. Interestingly, trading partner size did not influence trading partner trust, although ‘volume of business conducted’ between trading partners did. Other reported influences included increased information sharing and confidence; improved relations; business growth and efficiencies such as faster payment, improved delivery and reliability. The results are intended to enhance organisational appreciation of the similarities and differences between traditional and electronic trading relationships and contribute to the growing body of knowledge on inter-organisational trust.