Online Reverse Auctions and the Dynamics of Trust

Authors:
Mohamed Charki;Emmanuel Josserand
Affiliations:
Department of Markets. Management, and Humanities, EDHEC Business School, Lille, France;HEC, University of Geneva
Venue:
Journal of Management Information Systems
Year:
2008

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Abstract

This research explores the effect of the introduction of online reverse auctions (ORAs) on interorganizational trust between buyers and suppliers in the retail industry. Building upon the notion of the spirit of the technology and the organizing vision, we shed light on the "equivoque" nature of ORAs. In an integrative model, we show how the desocialization associated with the introduction to ORAs can lead to distrust. Our findings show specifically the importance of the role played by technical problems and rumors.