Institutional Trust Related EDI Lessons for eMarketplaces

Organizations around the world are capitalizing on a proliferation of new technologies and applications over the Internet and World Wide Web to develop e-business. Despite the interest in e-marketplaces, there are still many open questions about e-marketplaces and how they differ from other B2B e-commerce applications. This paper examines the lessons learned from EDI adoption to explain the success or failure of e-marketplace participation. Building upon the notion of institutional trust that develops through situational, structural and procedural factors, we propose a model which identifies facilitating conditions that favor e-marketplace participation. We conclude the paper with implications to theory, practice and directions for future research.