Customer trust in virtual environments: A managerial perspective

Boston University Law Review

Volumn 81, Issue 3, 2001, Pages 665-685

  Jarvenpaa, Sirkka L ^b   Tiller, Emerson H ^a  

^a UNIVERSITY OF TEXAS AT AUSTIN   (United States)

^b NONE

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EID: 0035638139     PISSN: 00068047     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Review

References (101)

1. See generally Sara Jones et al., "Trust Requirements in E-Business," 43 COMM. OF THE ACM 12, 81-87 (December 2000) (containing a special section on trust and the Internet with articles focused on the first two forms of risks - security and competence risks).
2. See Stefano Grazioli & Sirkka L. Jarvenpaa, Perils of Internet Fraud: An Empirical Investigation of Deception and Trust with Experienced Internet Consumers, 30 IEEE TRANSACTIONS ON MAN, MACHINE AND CYBERNETICS: SPECIAL ISSUE ON ELECTRONIC COMMERCE 393 (July 2000).
3. See LAWRENCE LESSIG, CODE AND OTHER LAWS OF CYBERSPACE (2000).
4. See Mary J. Culnan, Protecting Privacy Online: Is Self-Regulation Working?, J. PUB. POL'Y & MKTG. (Spring 2000).
5. See A Survey of Consumer Privacy Attitudes and Behaviors, conducted for The Privacy Leadership Initiative by Harris Interactive 〈http://www.understandingprivacy.org/content/library/harrissummary. pdf〉 (survey of 3,113 adult Internet users).
6. Jones et al., supra note 1, at 82.
7. See Donna L. Hoffman et al., Building Consumer Trust Online, 42 COMM. OF THE ACM 80 (April 1999) (arguing that the reason more people do not shop online is the fundamental lack of faith between most businesses and consumers).
8. See, e.g., How Does Trust Matter?, BUSINESS 2.0 (July 2000).
9. See Sirkka L. Jarvenpaa & Blake Ives, The Global Network Organization of the Future: Information Management Opportunities and Challenges, 10 J. MGMT. INFO. SYST. 25 (1994).
10. See Gary Hamel & Jeff Sampler, E-Corporation: More Than Just Web-based, It's Building a New Industry Order, FORTUNE, Dec. 7, 1998, at 88.
11. See Peter Kollock, The Emergence of Exchange Structures: An Experimental Study of Uncertainty, Commitment, and Trust, 100 AM. J. SOC. 313 (1994).
12. Empirical studies on Internet consumer shopping have found trust to impact attitudes, purchase decisions, and purchase behavior of consumers who encounter unfamiliar store fronts on the Internet. See Sirkka L. Jarvenpaa et al., Consumer Trust in an Internet Store, 1 INFO. TECH. MGMT, SPECIAL ISSUE ON ELECTRONIC COMMERCE 45 (1999); Sirkka L. Jarvenpaa & Noam Tractinsky, Consumer Trust in an Internet Store: A Cross-Cultural Validation, J. COMPUTER-MEDIATED COMMUNICATION (Spring 1999) (discussing a cross-cultural issues regarding trust); Katherine Josephine Stewart, Transference as a Means of Establishing Trust in World Wide Web Sites (2000) (unpublished Ph.D. dissertation, University of Texas at Austin).
13. Empirical studies on Internet consumer shopping have found trust to impact attitudes, purchase decisions, and purchase behavior of consumers who encounter unfamiliar store fronts on the Internet. See Sirkka L. Jarvenpaa et al., Consumer Trust in an Internet Store, 1 INFO. TECH. MGMT, SPECIAL ISSUE ON ELECTRONIC COMMERCE 45 (1999); Sirkka L. Jarvenpaa & Noam Tractinsky, Consumer Trust in an Internet Store: A Cross-Cultural Validation, J. COMPUTER-MEDIATED COMMUNICATION (Spring 1999) (discussing a cross-cultural issues regarding trust); Katherine Josephine Stewart, Transference as a Means of Establishing Trust in World Wide Web Sites (2000) (unpublished Ph.D. dissertation, University of Texas at Austin).
14. See RODERICK M. KRAMER & TOM R. TYLER, TRUST IN ORGANIZATIONS: FRONTIERS OF THEORY AND RESEARCH (1996).
15. See Toshio Yamagishi & Midori Yamagishi, Trust and Commitment in the United States and Japan, 18 MOTIVATION AND EMOTION 129, 138 (1994).
16. See Morton Deutsch, Trust and Suspicion, 12 J. CONFLICT RESOLUTION 265 (1958).
17. See Joel Brockner et al., When Trust Matters: The Moderating Effect of Outcome Favorability, 42 ADMIN. SCI. Q. 558, 583 (1997) (describing how managers may be able to maintain support when making decisions that lead to relatively unfair outcomes).
18. See Paul DiMaggio & Hugh Louch, Socially Embedded Consumer Transactions: For What Kinds of Purchases Do People Most Often Use Networks, 63 AM. PSYCH. REV. 619 (1998).
19. Many have touted the importance of trust in stimulating purchases over the Internet. See John A. Quelch & Lisa R. Klein, The Internet and International Marketing, 38 SLOAN MGMT. REV. 60 (1996) (stating that there has been a major shift to a trust economy); Peter G.W. Keen, Are You Ready for "Trust" Economy, COMPUTER WORLD, April 21,1997, at 80. An experiential survey of United States-based online browsers, new to Internet based shopping found the shoppers fascinated by international shopping opportunities on the Web, but lacked trust to actually purchase from overseas sites. See Sirkka L. Jarvenpaa & Peter A. Todd, Consumer Reactions to Electronic Shopping on the World Wide Web, 1 J. ELECTRONIC COM. 59 (1997). Others report widespread distrust among consumers about Internet based merchants. See Mary J. Culnan & Pamela K. Armstrong, Information Privacy Concerns, Procedural Fairness and Impersonal Trust: An Empirical Investigation, 10 ORG. SCI. 104 (1999).
20. Many have touted the importance of trust in stimulating purchases over the Internet. See John A. Quelch & Lisa R. Klein, The Internet and International Marketing, 38 SLOAN MGMT. REV. 60 (1996) (stating that there has been a major shift to a trust economy); Peter G.W. Keen, Are You Ready for "Trust" Economy, COMPUTER WORLD, April 21,1997, at 80. An experiential survey of United States-based online browsers, new to Internet based shopping found the shoppers fascinated by international shopping opportunities on the Web, but lacked trust to actually purchase from overseas sites. See Sirkka L. Jarvenpaa & Peter A. Todd, Consumer Reactions to Electronic Shopping on the World Wide Web, 1 J. ELECTRONIC COM. 59 (1997). Others report widespread distrust among consumers about Internet based merchants. See Mary J. Culnan & Pamela K. Armstrong, Information Privacy Concerns, Procedural Fairness and Impersonal Trust: An Empirical Investigation, 10 ORG. SCI. 104 (1999).
21. Many have touted the importance of trust in stimulating purchases over the Internet. See John A. Quelch & Lisa R. Klein, The Internet and International Marketing, 38 SLOAN MGMT. REV. 60 (1996) (stating that there has been a major shift to a trust economy); Peter G.W. Keen, Are You Ready for "Trust" Economy, COMPUTER WORLD, April 21,1997, at 80. An experiential survey of United States-based online browsers, new to Internet based shopping found the shoppers fascinated by international shopping opportunities on the Web, but lacked trust to actually purchase from overseas sites. See Sirkka L. Jarvenpaa & Peter A. Todd, Consumer Reactions to Electronic Shopping on the World Wide Web, 1 J. ELECTRONIC COM. 59 (1997). Others report widespread distrust among consumers about Internet based merchants. See Mary J. Culnan & Pamela K. Armstrong, Information Privacy Concerns, Procedural Fairness and Impersonal Trust: An Empirical Investigation, 10 ORG. SCI. 104 (1999).
22. Many have touted the importance of trust in stimulating purchases over the Internet. See John A. Quelch & Lisa R. Klein, The Internet and International Marketing, 38 SLOAN MGMT. REV. 60 (1996) (stating that there has been a major shift to a trust economy); Peter G.W. Keen, Are You Ready for "Trust" Economy, COMPUTER WORLD, April 21,1997, at 80. An experiential survey of United States-based online browsers, new to Internet based shopping found the shoppers fascinated by international shopping opportunities on the Web, but lacked trust to actually purchase from overseas sites. See Sirkka L. Jarvenpaa & Peter A. Todd, Consumer Reactions to Electronic Shopping on the World Wide Web, 1 J. ELECTRONIC COM. 59 (1997). Others report widespread distrust among consumers about Internet based merchants. See Mary J. Culnan & Pamela K. Armstrong, Information Privacy Concerns, Procedural Fairness and Impersonal Trust: An Empirical Investigation, 10 ORG. SCI. 104 (1999).
23. See F.F. Reichheld & P. Schefter, E-Loyalty: Your Secret Weapon on the Web, 78 HARV. BUS. REV. 105 (July-August 2000).
24. See e.g., Wanda J. Orlikowski, The Duality of Technology: Rethinking the Concept of Technology in Organizations, 3 ORG. SCI. 398 (1992); Wanda J. Orlikowski et al., Shaping Electronic Communication: The Metastructuring of Technology in the Context of Use, 6 ORG. SCI. 423 (1995).
25. See e.g., Wanda J. Orlikowski, The Duality of Technology: Rethinking the Concept of Technology in Organizations, 3 ORG. SCI. 398 (1992); Wanda J. Orlikowski et al., Shaping Electronic Communication: The Metastructuring of Technology in the Context of Use, 6 ORG. SCI. 423 (1995).
26. See Grazioli & Jarvenpaa, supra note 2.
27. See Francis Fukuyama, Trust Still Counts in a Virtual World, 158 FORBES 33, December 2 1996: Charles Handy, Trust and the Virtual Organization, 73 HARV. BUS. REV. 40 (1995).
28. See Francis Fukuyama, Trust Still Counts in a Virtual World, 158 FORBES 33, December 2 1996: Charles Handy, Trust and the Virtual Organization, 73 HARV. BUS. REV. 40 (1995).
29. See Justine Cassell & Timothy Bickmore, External Manifestations of Trustworthiness in the Interface, 43 COMM. OF THE ACM 50 (2000).
30. Helen Nissenbaum, Securing Trust Online: Wise Choice or Contradiction 81 B.U. L. REV. (2001).
31. See Martin Lea & Russell Spears, Paralanguage and Social Perception in Computer-Mediated Communication, 2 J. ORGANIZATIONAL COMPUTING 321 (1992); Martin Lea et al., "Flaming" in Computer-Mediated Communications: Observations, Explanations, Implications, in CONTEXTS OF COMPUTER-MEDIATED COMMUNICATION 89 (Martin Lea et al. eds., 1992).
32. See Martin Lea & Russell Spears, Paralanguage and Social Perception in Computer-Mediated Communication, 2 J. ORGANIZATIONAL COMPUTING 321 (1992); Martin Lea et al., "Flaming" in Computer-Mediated Communications: Observations, Explanations, Implications, in CONTEXTS OF COMPUTER-MEDIATED COMMUNICATION 89 (Martin Lea et al. eds., 1992).
33. Schneiderman also acknowledges that online trust is "difficult to generate, shaken easily, and once shaken extremely difficult to rebuild." See B. Schneiderman, Designing Trust Into Online Experiences, 43 COMM. OF THE ACM 57 (2000).
34. See KRAMER & TYLER, supra note 13.
35. See A. DeMeyer, Tech Talk: How Managers Are Stimulating Global R&D Communications, 33 SLOAN MGMT. REV. 49 (1991).
36. See Marjorie Sarbaugh-Thompson & Martha S. Feldman, Electronic Mail and Organizational Communication: Does Saying "Hi" Really Matter?, 9 ORG. SCI. 685 (1998). Others argue that the technological environment does not necessarily prevent a relationship and trust from developing, but the speed and the way the relationship develops might be different. See M. Lynne Markus, Electronic Mail as the Medium of Managerial Choice, 5 ORG. SCI. 502 (1994); Malcolm R. Parks & Kory Floyd, Making Friends in Cyberspace, 46 J. COMM. 80 (1996); Joseph B. Walther, Computer-Mediated Communications: Impersonal, Interpersonal, and Hyperpersonal Interactions, 23 COMM. RES. 3 (1996).
37. See Marjorie Sarbaugh-Thompson & Martha S. Feldman, Electronic Mail and Organizational Communication: Does Saying "Hi" Really Matter?, 9 ORG. SCI. 685 (1998). Others argue that the technological environment does not necessarily prevent a relationship and trust from developing, but the speed and the way the relationship develops might be different. See M. Lynne Markus, Electronic Mail as the Medium of Managerial Choice, 5 ORG. SCI. 502 (1994); Malcolm R. Parks & Kory Floyd, Making Friends in Cyberspace, 46 J. COMM. 80 (1996); Joseph B. Walther, Computer-Mediated Communications: Impersonal, Interpersonal, and Hyperpersonal Interactions, 23 COMM. RES. 3 (1996).
38. See Marjorie Sarbaugh-Thompson & Martha S. Feldman, Electronic Mail and Organizational Communication: Does Saying "Hi" Really Matter?, 9 ORG. SCI. 685 (1998). Others argue that the technological environment does not necessarily prevent a relationship and trust from developing, but the speed and the way the relationship develops might be different. See M. Lynne Markus, Electronic Mail as the Medium of Managerial Choice, 5 ORG. SCI. 502 (1994); Malcolm R. Parks & Kory Floyd, Making Friends in Cyberspace, 46 J. COMM. 80 (1996); Joseph B. Walther, Computer-Mediated Communications: Impersonal, Interpersonal, and Hyperpersonal Interactions, 23 COMM. RES. 3 (1996).
39. See Marjorie Sarbaugh-Thompson & Martha S. Feldman, Electronic Mail and Organizational Communication: Does Saying "Hi" Really Matter?, 9 ORG. SCI. 685 (1998). Others argue that the technological environment does not necessarily prevent a relationship and trust from developing, but the speed and the way the relationship develops might be different. See M. Lynne Markus, Electronic Mail as the Medium of Managerial Choice, 5 ORG. SCI. 502 (1994); Malcolm R. Parks & Kory Floyd, Making Friends in Cyberspace, 46 J. COMM. 80 (1996); Joseph B. Walther, Computer-Mediated Communications: Impersonal, Interpersonal, and Hyperpersonal Interactions, 23 COMM. RES. 3 (1996).
40. See Handy, supra note 22, at 46. Many others who research the effects of computer-mediated communication share the view that the Internet depletes trust unless it is combined with face-to-face interaction. A series of studies at the University of Texas involving individuals working virtually over extended periods have consistently found that trust rarely increases over time. See Sirkka L. Jarvenpaa & Dorothy E. Leidner, Communication and Trust in Global Virtual Teams, 10 ORG. SCI. 791 (1999); C. Brad Crisp and Sirkka L. Jarvenpaa, Trust Over Time In Global Virtual Teams (McCombs Business School, University of Texas at Austin, Working Paper, 2000).
41. See Handy, supra note 22, at 46. Many others who research the effects of computer-mediated communication share the view that the Internet depletes trust unless it is combined with face-to-face interaction. A series of studies at the University of Texas involving individuals working virtually over extended periods have consistently found that trust rarely increases over time. See Sirkka L. Jarvenpaa & Dorothy E. Leidner, Communication and Trust in Global Virtual Teams, 10 ORG. SCI. 791 (1999); C. Brad Crisp and Sirkka L. Jarvenpaa, Trust Over Time In Global Virtual Teams (McCombs Business School, University of Texas at Austin, Working Paper, 2000).
42. D.M. Rousseau et al., Not So Different After All: A Cross-Discipline View of Trust, 23 ACAD. OF MGMT. REV. 393, 395 (1998).
43. See Gregory A. Bigley & Jone L. Pearce, Straining for Shared Meaning in Organization Science: Problems of Trust and Distrust, 23 ACAD. OF MGMT. REV. 405 (1998).
44. See Nissenbaum, supra note 24.
45. See Roy J. Lewicki et al., Trust and Distrust: New Relationships and Realities, 23 ACAD. OF MGMT. REV. 438 (1998).
46. Rationale choice is a general theoretical perspective, a family of theories, that explains social outcomes by constructing models of individual action based on the actor's ex ante motivations. See Michael Hechter & Satoshi Kanazawa, Sociological Rationale Choice Theory, 23 ANN. REV. OF SOC. 191 (1997). The perspective is particularly prevailing in theories in organizations, politics, economics, labor markets, and criminology, although some take a more "thick" and others a more "thin" version of the perspective.
47. See Roger C. Mayer et al., An Integrative Model of Organizational Trust, 20 ACAD. OF MGMT. REV. 709 (1995). The rational choice perspective is reflected in several models of trust in dyadic, group and organizational, and inter-organizational relationships. See id.; Akbar Zaheer et al., Does Trust Matter? Exploring the Effects of Interorganizational and Interpersonal Trust on Performance, 9 ORG. SCI. 141 (1998).
48. See Roger C. Mayer et al., An Integrative Model of Organizational Trust, 20 ACAD. OF MGMT. REV. 709 (1995). The rational choice perspective is reflected in several models of trust in dyadic, group and organizational, and inter-organizational relationships. See id.; Akbar Zaheer et al., Does Trust Matter? Exploring the Effects of Interorganizational and Interpersonal Trust on Performance, 9 ORG. SCI. 141 (1998).
49. Larry E. Ribstein, Law v. Trust, 81 B.U.L. REV. (2001). Ribstein separates out what he calls semi-strong and weak forms of trust, which are based on calculation, from what he calls strong-form Trust, which is noncalculative.
50. See Avner Ben-Ner & Louis Putterman, Trusting and Trustworthiness, 81 B.U.L. REV. (2001).
51. See Oliver E. Williamson, Comparative Economic Organization: The Analysis of Discrete Structural Alternatives, 36 ADMIN. SCI. Q. 269 (1991).
52. D. Harrison McKnight et al., Initial Trust Formation in New Organizational Relationships, 23 ACAD. OF MGMT. REV. 473 (1998).
53. Some have argued that deterrence undermines trust. Gellner suggests that "strong government destroys trust because it reduces the need for trust." Yamagishi and Yamagishi, supra note 14, at 135.
54. See James M. Hagen & Soonkyoo Choe, Trust in Japanese Interfirm Relations: Institutional Sanctions Matter, 23 ACAD. OF MGMT. REV. 589 (1998); L.G. Zucker, Production of Trust: Institutional Sources of Economic Structure, 1840-1920, 8 RES. IN ORG. BEHAV. 53 (1986).
55. See James M. Hagen & Soonkyoo Choe, Trust in Japanese Interfirm Relations: Institutional Sanctions Matter, 23 ACAD. OF MGMT. REV. 589 (1998); L.G. Zucker, Production of Trust: Institutional Sources of Economic Structure, 1840-1920, 8 RES. IN ORG. BEHAV. 53 (1986).
56. See Williamson, supra note 39.
57. See G.M. Spreitzer & A.K. Mishra, Giving Up Control Without Losing Control: Trust and Its Substitutes' Effects on Managers' Involving Employees in Decision Making, 24 GROUP & ORG. MGMT. 155 (1999).
58. See A.L. SHAPIRO, THE CONTROL REVOLUTION (1999); Hoffman et al., supra note 7.
59. See A.L. SHAPIRO, THE CONTROL REVOLUTION (1999); Hoffman et al., supra note 7.
60. See SHAPIRO, supra note 45.
61. Many see control and trust as substitutes for each other and that high levels of uncertainty constrain the effective use of control requiring instead the use of trust. See Richard Leifer & Peter K. Mills, An Information Processing Approach for Deciding upon Control Strategies and Reducing Control Loss in Emerging Organizations, 22 J. MGMT. 113 (1996); Mayer et al., supra note 36; Raymond E. Miles & Charles C. Snow, Organizations: New Concepts and New Forms, 28 CALIF. MGMT. REV. 62 (1986).
62. Many see control and trust as substitutes for each other and that high levels of uncertainty constrain the effective use of control requiring instead the use of trust. See Richard Leifer & Peter K. Mills, An Information Processing Approach for Deciding upon Control Strategies and Reducing Control Loss in Emerging Organizations, 22 J. MGMT. 113 (1996); Mayer et al., supra note 36; Raymond E. Miles & Charles C. Snow, Organizations: New Concepts and New Forms, 28 CALIF. MGMT. REV. 62 (1986).
63. Many see control and trust as substitutes for each other and that high levels of uncertainty constrain the effective use of control requiring instead the use of trust. See Richard Leifer & Peter K. Mills, An Information Processing Approach for Deciding upon Control Strategies and Reducing Control Loss in Emerging Organizations, 22 J. MGMT. 113 (1996); Mayer et al., supra note 36; Raymond E. Miles & Charles C. Snow, Organizations: New Concepts and New Forms, 28 CALIF. MGMT. REV. 62 (1986).
64. See Francis Fukuyama, Differing Disciplinary Perspectives on the Origin of Trust, 81 B.U. L. REV. (2001).
65. See Mark Granovetter, Economic Action and Social Structure: The Problem of Embeddedness, 91 AM. J. SOC. 481 (1985); V. Wekselberg, Reduced "Social" in a New Model of Organizational Trust, 21 ACAD. OF MGMT. REV. 333 (1996).
66. See Mark Granovetter, Economic Action and Social Structure: The Problem of Embeddedness, 91 AM. J. SOC. 481 (1985); V. Wekselberg, Reduced "Social" in a New Model of Organizational Trust, 21 ACAD. OF MGMT. REV. 333 (1996).
67. See Charles F. Sabel, Studied Trust: Building New Forms of Cooperation in a Volatile Economy, 46 HUM. REL. 1133, 1136 (1993).
68. Walter W. Powell, Neither Market Nor Hierarchy: Network Forms of Organization, 12 RES. IN ORG. BEHAV. 295 (1990).
69. FRANCIS FUKUYAMA, TRUST: THE SOCIAL VIRTUES AND THE CREATION OF PROSPERITY 26 (1995).
70. See Rousseau et al., supra note 31, at 400 (identity-based trust is the broadest form of relational trust)
71. See id. (noting the tendency of parties who interact repeatedly to characterize themselves as "we" rather than "them").
72. See DiMaggio & Louch, supra note 17, at 624-25 (noting that "the greater the risk that a transaction poses to consumers, the more likely are consumers to seek out sellers to whom they have preexisting ties").
73. See id. at 627 (asserting that the seller may be concerned with the ramifications of honest misunderstandings as well as the potential costs of opportunistic behavior).
74. See Sridhar Balasubramanian & Vijay Mahajan, The Economic Leverage of the Virtual Community, International Journal of Electronic Commerce, INT'L J. OF ELECTRONIC COM. (forthcoming 2001) (on file with authors) (noting that one of the required characteristics of a virtual community is social interaction concerning a well-understood focus, including shared objectives, shared property/identity, or shared interest).
75. See id. ("A community can have non-social, commercial activities associated with it, but the community does not exist without its social care.").
76. See, e.g., Rousseau et. al., supra note 31, at 402 (noting the changing forms of trust as large firms begin to break up in favor of independent contractors).
77. See Sirkka L. Jarvenpaa et. al. Is Anybody Out There? The Implications of Trust in Global Virtual Teams, 14 J. MGMT INFO. SYS. 29, 57-58 (1998) (noting that in a study concerning trust in virtual relationships, teams demonstrating swift trust demonstrated the highest level of trust); C.S. Iacono & S. Weisband, Developing Trust in Virtual Teams, Proceedings of the Hawaii International Conference on Systems Sciences, Hawaii (1997).
78. See Sirkka L. Jarvenpaa et. al. Is Anybody Out There? The Implications of Trust in Global Virtual Teams, 14 J. MGMT INFO. SYS. 29, 57-58 (1998) (noting that in a study concerning trust in virtual relationships, teams demonstrating swift trust demonstrated the highest level of trust); C.S. Iacono & S. Weisband, Developing Trust in Virtual Teams, Proceedings of the Hawaii International Conference on Systems Sciences, Hawaii (1997).
79. See D. Meyerson et al., Swift Trust and Temporary Groups, in TRUST IN ORGANIZATIONS: FRONTIERS OF THEORY AND RESEARCH (Roderick M. Kramer & Tom R. Tyler eds., 1996).
80. See infra notes 66-68 and accompanying text (noting the impact concern for the future has on individual extension of trust).
81. See Meyerson et al, supra note 61.
82. See id. at 180.
83. See Lee Jussim, Social Perception and Social Reality: A Reflection-Construction Model, 98 PSYCHOL. REV. 54, 70 (1991) (noting it can be neither prove nor disproven that "events in the social world result from individuals' beliefs as much as they cause those beliefs"). Across many social contexts, expectations of others have been found to create a social reality through self-fulfilling or self-sustaining prophecies. See id. at 60 ("Self-sustaining prophecies refer to situations in which perceivers' beliefs lead targets to continue engaging in some behavior when they would have otherwise changed.").
84. Robert M. Axelrod, THE EVOLUTION OF COOPERATION (1984); see also James S. Coleman, Social Capital in the Creation of Human Capital, 94 AM. J. SOC. S95, S102-3 (1988) (commenting on social structures in which individuals aid each other trusting that the obligation will eventually be repaid).
85. Robert M. Axelrod, THE EVOLUTION OF COOPERATION (1984); see also James S. Coleman, Social Capital in the Creation of Human Capital, 94 AM. J. SOC. S95, S102-3 (1988) (commenting on social structures in which individuals aid each other trusting that the obligation will eventually be repaid).
86. See Powell, supra note 51.
87. See Paul Resnick et. al., Reputation Systems, 43 COMM. OF THE ACM 45, 46 (December 2000) ("Reputation systems seek to establish the shadow of the future to each transaction by creating an expectation that other people will look back on it.").
88. See Handy, supra note 22, at 46 (commenting that "[p]aradoxically, the more virtual an organization becomes, the more its people need to meet in person").
89. See, e.g., Amy L. Kristof et al., The Virtual Team: A Case Study and Inductive Model, in 2 ADVANCES IN INTERDISCIPLINARY STUDIES OF WORK TEAMS: KNOWLEDGE WORK IN TEAMS 299 (M.M. Beyerlein et al. eds., 1995).
90. See Reichheld & Schefter, supra note 19.
91. Thomas M. Jones & Norman E. Bowie, Moral Hazards on the Road to the "Virtual" Corporation, 8 BUS. ETHICS Q. 273 (1998).
92. See Nissenbaum, supra note 24 (noting that the duties and responsibilities of many Cyberspace "roles" are misunderstood and lack an "explicit framework of assurances" to support them).
93. See, e.g., Grazioli & Jarvenpaa, supra note 2.
94. See Rajendra P. Srivastava & Theodore J. Mock, Evidential Reasoning for Web Trust Assurance Services, 16 J. MGMT INFO. SYS. 11 (Winter 1999-2000).
95. Probably because of the reverse economics, personalization is still not widely practiced. Schoder and Yin report that 67% of the web businesses they surveyed did not employ personalization techniques. See Detlef Schoder & Pai-Ling Yin, Building Firm Trust Online, 43 COMM. OF THE ACM 73, 75 (December 2000) (67% did not employ customization techniques and 20% were not familiar with the one-to-one marketing strategy).
96. See Thomas Russell Shaw, An Empirical Study of Webmasters' Attitudes Toward Privacy Based on Ethical Decision Making and Psychological Theories (December 2000) (unpublished Ph.D. dissertation, University of Texas at Austin) (on file with author).
97. See Resnick et al., supra note 68, at 46 ("Future buyers, lacking personal histories with particular sellers, may still base their buying decisions on a sufficiently extensive public history.").
98. See Stewart, supra note 12 (commenting that a link from a trusted site to an unknown site creates higher trust, which is further boosted if there are few links or if a perceived business relationship exists between the two sites).
99. See FRITZ HEIDER, THE PSYCHOLOGY OF INTERPERSONAL RELATIONS (1958).
100. See Patricia M. Doney & Joseph P. Cannon, An Examination of Trust in Buyer-Seller Relationships, 61 J. MARKETING 35, 38 (1997) (asserting that buyers "use the calculative process to estimate that the costs of a supplier acting in an untrustworthy manner are quite high for firms with good reputations").
101. DiMaggio and Louch argue that in commercial buyer and seller relationships, community governance allows a form of hierarchy we have long associated with internal firm structures. See DiMaggio, supra note 17, at 644 (noting that "individual consumers use social networks in much the same way as firms use hierarchy: as alternative governance structures for transactions for which impersonal market relations provide inadequate protection against opportunistic behavior").