Trust of Potential Buyers in New Entrepreneurial Ventures (eBook)

Gunnar Wiedenfels wrote this dissertation under Prof. Malte Brettel’s supervision at the WIN chair of the RWTH Aachen. He works as project manager with an international management consulting firm now.

Foreword 6
Acknowledgements 8
Overview of contents 10
Table of contents 12
List of figures 18
List of tables 23
List of abbreviations 26
1 Introduction 28
2 Conceptual basics 41
3 Theoretical framework 76
4 Hypotheses and research model 96
5 Preparation of the empirical analysis 119
6 Survey design and data sample 169
7 Empirical analysis 204
8 Discussion and conclusion 229
Appendix 253
Bibliography 322

4 Hypotheses and research model (S. 71-72)

The purpose of chapter 4 is the development of the research model, the core of this research effort, through the proposition of research hypotheses on causal effects between constructs involved. The model development will follow two structuring elements: the research objectives of this thesis and the theoretical foundation developed in chapter 3. In order to answer the first research question, a three-stage model of trust building and the effect of trust in a supplier is drafted based on the conceptual considerations discussed in the previous chapters. The hypotheses associated with this main model will be proposed in section 4.1. Within the main model, there are three logical steps: trust and its effect on purchase intentions, direct antecedents of trust, and, finally, the drivers of trustworthiness.

Hypotheses concerning the effect of trust will be analyzed first (section 4.1.1), followed by the direct antecedents of trust (section 4.1.2). These two sections largely draw on the conceptualization of trust according to Mayer et al. (1995). In the third step (section 4.1.3), the modes of trust production proposed by Zucker (1986) are applied to hypothesize the effects of drivers of trustworthiness, i.e., trust building measures and characteristics, on the perception of trustworthiness by a transaction partner. Section 4.2 will then revisit the concept of product qualities described within the theory of the economics of information, as presented in section 2.4. This section is based on the implications of different levels of risk in a transaction due to different degrees of information asymmetry between the experience industry and the credence industry. Accordingly, associated differences in the trust model are hypothesized. The chapter closes with a summary of the research model given in section 4.3.

4.1 Hypotheses in the main model

In this section, a model of trust building and the positive effect of trust on purchase intentions is developed. While the model will incorporate the specific characteristics and situational requirements of NEVs, it shall be designed to be robust across firm age classes and industry types.

4.1.1 The effect of trust on purchase intentions and the role of perceived risk

As argued in chapter 3, the framework suggested by Mayer et al. provides a sound basis for the hypothesis of a positive effect of trust on a purchase intention in the buyer-seller relationships in the focus of this study. Applying the authors` argument to this specific situation, a potential buyer compares his level of trust in a supplier with his perception of risk generally associated with a purchase of the respective product or service. If the trust level outweighs the risk perception, the purchase intention is formed. Accordingly, higher levels of trust should lead to higher (more certain) levels of purchase intention. Theoretically, this view of a positive effect of trust in relationships is shared by various authors. From an economics point of view, Barney and Hansen (1994) and, similarly, Brettel and Heinemann (2003) argue that trust can be a competitive advantage for a firm as it allows it to enter a relationship without the provision of costly governance and control mechanisms.313 Jarillo (1988) even reasons that "lack of trust is the quintessential cause of transaction costs."