[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v149y2022icp327-339.html
   My bibliography  Save this article

Building and sustaining trust in remote work by platform-dependent entrepreneurs on digital labor platforms: Toward an integrative framework

Author

Listed:
  • Yao, Qiongrui (Missy)
  • Baker, LaKami T.
  • Lohrke, Franz T.
Abstract
In the platform economy, digital labor platforms (DLPs) enable remote work by intermediating transactions between platform-dependent entrepreneurs (PDEs) and clients. Information asymmetry arises, however, because PDEs engaged in remote work often are more informed about their abilities than clients are, which may lead to the “lemons problem” and cause market failure. Applying transaction cost economics, we develop a framework that incorporates propositions about what conditions allow different forms of trust to emerge among PDEs, DLPs, and clients. We also delineate how building and sustaining trust should help mitigate market failure threats on DLPs, and, in turn, improve outcomes for PDEs, platforms, and clients. Our framework makes important conceptual extensions by highlighting the relevance of information asymmetry, linking trust development within the DLP-facilitated service triad, and underscoring transaction frequency’s importance, which has been largely overlooked in extant literature. It also provides practical implications for remote work involving PDEs, DLPs, and clients.

Suggested Citation

  • Yao, Qiongrui (Missy) & Baker, LaKami T. & Lohrke, Franz T., 2022. "Building and sustaining trust in remote work by platform-dependent entrepreneurs on digital labor platforms: Toward an integrative framework," Journal of Business Research, Elsevier, vol. 149(C), pages 327-339.
    • Handle: RePEc:eee:jbrese:v:149:y:2022:i:c:p:327-339
    DOI: 10.1016/j.jbusres.2022.05.046
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296322004805
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2022.05.046?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kässi, Otto & Lehdonvirta, Vili, 2018. "Online labour index: Measuring the online gig economy for policy and research," Technological Forecasting and Social Change, Elsevier, vol. 137(C), pages 241-248.
    2. Sirkka L. Jarvenpaa & Dorothy E. Leidner, 1999. "Communication and Trust in Global Virtual Teams," Organization Science, INFORMS, vol. 10(6), pages 791-815, December.
    3. Gary Bolton & Ben Greiner & Axel Ockenfels, 2013. "Engineering Trust: Reciprocity in the Production of Reputation Information," Management Science, INFORMS, vol. 59(2), pages 265-285, January.
    4. Alan Benson & Aaron Sojourner & Akhmed Umyarov, 2020. "Can Reputation Discipline the Gig Economy? Experimental Evidence from an Online Labor Market," Management Science, INFORMS, vol. 66(5), pages 1802-1825, May.
    5. Yadong Luo, 2005. "Transactional characteristics, institutional environment and joint venture contracts," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(2), pages 209-230, March.
    6. Huimin Gu & Tingting (Christina) Zhang & Can Lu & Xiaoxiao Song, 2021. "Assessing Trust and Risk Perceptions in the Sharing Economy: An Empirical Study," Journal of Management Studies, Wiley Blackwell, vol. 58(4), pages 1002-1032, June.
    7. Tsedal B. Neeley & Paul M. Leonardi, 2018. "Enacting knowledge strategy through social media: Passable trust and the paradox of nonwork interactions," Strategic Management Journal, Wiley Blackwell, vol. 39(3), pages 922-946, March.
    8. Acquier, Aurélien & Daudigeos, Thibault & Pinkse, Jonatan, 2017. "Promises and paradoxes of the sharing economy: An organizing framework," Technological Forecasting and Social Change, Elsevier, vol. 125(C), pages 1-10.
    9. Sutherland, Will & Jarrahi, Mohammad Hossein, 2018. "The sharing economy and digital platforms: A review and research agenda," International Journal of Information Management, Elsevier, vol. 43(C), pages 328-341.
    10. Yan Dong & Kefeng Xu & Yi Xu & Xiang Wan, 2016. "Quality Management in Multi-Level Supply Chains with Outsourced Manufacturing," Production and Operations Management, Production and Operations Management Society, vol. 25(2), pages 290-305, February.
    11. Gideon D. Markman & Marvin Lieberman & Michael Leiblein & Li‐Qun Wei & Yonggui Wang, 2021. "The Distinctive Domain of the Sharing Economy: Definitions, Value Creation, and Implications for Research," Journal of Management Studies, Wiley Blackwell, vol. 58(4), pages 927-948, June.
    12. Bill McEvily & Vincenzo Perrone & Akbar Zaheer, 2003. "Trust as an Organizing Principle," Organization Science, INFORMS, vol. 14(1), pages 91-103, February.
    13. de Reuver, Mark & Sørensen, Carsten & Basole, Rahul C., 2018. "The digital platform: a research agenda," LSE Research Online Documents on Economics 80669, London School of Economics and Political Science, LSE Library.
    14. Sandro Castaldo & Katia Premazzi & Fabrizio Zerbini, 2010. "The Meaning(s) of Trust. A Content Analysis on the Diverse Conceptualizations of Trust in Scholarly Research on Business Relationships," Journal of Business Ethics, Springer, vol. 96(4), pages 657-668, November.
    15. Paul S. Adler, 2001. "Market, Hierarchy, and Trust: The Knowledge Economy and the Future of Capitalism," Organization Science, INFORMS, vol. 12(2), pages 215-234, April.
    16. Ni Huang & Gordon Burtch & Yili Hong & Paul A. Pavlou, 2020. "Unemployment and Worker Participation in the Gig Economy: Evidence from an Online Labor Market," Information Systems Research, INFORMS, vol. 31(2), pages 431-448, June.
    17. Mariani, Marcello M. & Ek Styven, Maria & Teulon, Fréderic, 2021. "Explaining the intention to use digital personal data stores: An empirical study," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    18. Laura Poppo & Kevin Zheng Zhou & Julie J. Li, 2016. "When can you trust “trust”? Calculative trust, relational trust, and supplier performance," Strategic Management Journal, Wiley Blackwell, vol. 37(4), pages 724-741, April.
    19. Tan, Zhi Ming & Aggarwal, Nikita & Cowls, Josh & Morley, Jessica & Taddeo, Mariarosaria & Floridi, Luciano, 2021. "The ethical debate about the gig economy: A review and critical analysis," Technology in Society, Elsevier, vol. 65(C).
    20. D. Sandy Staples & John S. Hulland & Christopher A. Higgins, 1999. "A Self-Efficacy Theory Explanation for the Management of Remote Workers in Virtual Organizations," Organization Science, INFORMS, vol. 10(6), pages 758-776, December.
    21. Moshe A. Barach & Joseph M. Golden & John J. Horton, 2020. "Steering in Online Markets: The Role of Platform Incentives and Credibility," Management Science, INFORMS, vol. 66(9), pages 4047-4070, September.
    22. Smith, Delmonize A. & Lohrke, Franz T., 2008. "Entrepreneurial network development: Trusting in the process," Journal of Business Research, Elsevier, vol. 61(4), pages 315-322, April.
    23. Nambisan, Satish & Baron, Robert A., 2021. "On the costs of digital entrepreneurship: Role conflict, stress, and venture performance in digital platform-based ecosystems," Journal of Business Research, Elsevier, vol. 125(C), pages 520-532.
    24. Hill, N. Sharon & Bartol, Kathryn M. & Tesluk, Paul E. & Langa, Gosia A., 2009. "Organizational context and face-to-face interaction: Influences on the development of trust and collaborative behaviors in computer-mediated groups," Organizational Behavior and Human Decision Processes, Elsevier, vol. 108(2), pages 187-201, March.
    25. Tailan Chi, 1994. "Trading in strategic resources: Necessary conditions, transaction cost problems, and choice of exchange structure," Strategic Management Journal, Wiley Blackwell, vol. 15(4), pages 271-290, May.
    26. Clyde W. Holsapple & Jiming Wu, 2008. "Building effective online game websites with knowledge-based trust," Information Systems Frontiers, Springer, vol. 10(1), pages 47-60, March.
    27. Mujtaba Ahsan, 2020. "Entrepreneurship and Ethics in the Sharing Economy: A Critical Perspective," Journal of Business Ethics, Springer, vol. 161(1), pages 19-33, January.
    28. D. Harrison McKnight & Vivek Choudhury & Charles Kacmar, 2002. "Developing and Validating Trust Measures for e-Commerce: An Integrative Typology," Information Systems Research, INFORMS, vol. 13(3), pages 334-359, September.
    29. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
    30. Laussel, Didier & Le Breton, Michel, 1995. "A general equilibrium theory of firm formation based on individual unobservable skills," European Economic Review, Elsevier, vol. 39(7), pages 1303-1319, August.
    31. Jeacle, Ingrid & Carter, Chris, 2011. "In TripAdvisor we trust: Rankings, calculative regimes and abstract systems," Accounting, Organizations and Society, Elsevier, vol. 36(4), pages 293-309.
    32. Soga, Lebene Richmond & Bolade-Ogunfodun, Yemisi & Mariani, Marcello & Nasr, Rita & Laker, Benjamin, 2022. "Unmasking the other face of flexible working practices: A systematic literature review," Journal of Business Research, Elsevier, vol. 142(C), pages 648-662.
    33. Elia, Stefano & Giuffrida, Maria & Mariani, Marcello M. & Bresciani, Stefano, 2021. "Resources and digital export: An RBV perspective on the role of digital technologies and capabilities in cross-border e-commerce," Journal of Business Research, Elsevier, vol. 132(C), pages 158-169.
    34. Christian Fieseler & Eliane Bucher & Christian Pieter Hoffmann, 2019. "Unfairness by Design? The Perceived Fairness of Digital Labor on Crowdworking Platforms," Journal of Business Ethics, Springer, vol. 156(4), pages 987-1005, June.
    35. Grace Gu & Feng Zhu, 2021. "Trust and Disintermediation: Evidence from an Online Freelance Marketplace," Management Science, INFORMS, vol. 67(2), pages 794-807, February.
    36. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(3), pages 355-374.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kamble, Sachin & Rana, Nripendra P. & Gupta, Shivam & Belhadi, Amine & Sharma, Rohit & Kulkarni, Praveen, 2023. "An effectuation and causation perspective on the role of design thinking practices and digital capabilities in platform-based ventures," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    2. Wu, Wei & Wang, Sihang & Ding, Guanqi & Mo, Jinfei, 2023. "Elucidating trust-building sources in social shopping: A consumer cognitive and emotional trust perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arfive Gandhi & Yudho Giri Sucahyo, 2021. "Architecting an Advanced Maturity Model for Business Processes in the Gig Economy: A Platform-Based Project Standardization," Economies, MDPI, vol. 9(4), pages 1-21, November.
    2. Uchiyama, Yosuke & Furuoka, Fumitaka & Md. Akhir, Md. Nasrudin, 2022. "Gig Workers, Social Protection and Labour Market Inequality: Lessons from Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 56(3), pages 165-184.
    3. Saura, Jose Ramon & Ribeiro-Soriano, Domingo & Zegarra Saldaña, Pablo, 2022. "Exploring the challenges of remote work on Twitter users' sentiments: From digital technology development to a post-pandemic era," Journal of Business Research, Elsevier, vol. 142(C), pages 242-254.
    4. Cossey, Jozef & Dedeurwaerdere, Tom & Périlleux, Anaïs, 2023. "Inherently unstable? Scaling, mission drift, and the comparative performance of community-based platforms in the sharing economy," Ecological Economics, Elsevier, vol. 212(C).
    5. Dandan Qiao & Huaxia Rui & Qian Xiong, 2023. "AI and Jobs: Has the Inflection Point Arrived? Evidence from an Online Labor Platform," Papers 2312.04180, arXiv.org, revised Aug 2024.
    6. Rong, Ke & Luo, Yining, 2023. "Toward born sharing: The sharing economy evolution enabled by the digital ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    7. Chatterjee, Sheshadri & Chaudhuri, Ranjan & Vrontis, Demetris, 2022. "Does remote work flexibility enhance organization performance? Moderating role of organization policy and top management support," Journal of Business Research, Elsevier, vol. 139(C), pages 1501-1512.
    8. Pao, Huei-Wen & Wu, Hsueh-Liang & Lee, Cheng-Yu, 2020. "Project interface choice and knowledge creation: Evidence of international science cooperation in Taiwan," Technovation, Elsevier, vol. 89(C).
    9. Zeng, Jing & Mahdi Tavalaei, M. & Khan, Zaheer, 2021. "Sharing economy platform firms and their resource orchestration approaches," Journal of Business Research, Elsevier, vol. 136(C), pages 451-465.
    10. Kausar, Asad & Shroff, Nemit & White, Hal, 2016. "Real effects of the audit choice," Journal of Accounting and Economics, Elsevier, vol. 62(1), pages 157-181.
    11. Maik Hesse & Timm Teubner & Marc T. P. Adam, 2022. "In Stars We Trust – A Note on Reputation Portability Between Digital Platforms," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 64(3), pages 349-358, June.
    12. Qin, Li & De-Juan-Vigaray, María D., 2021. "Social commerce: Is interpersonal trust formation similar between U.S.A. and Spain?," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    13. Möhlmann, Mareike, 2021. "Unjustified trust beliefs: Trust conflation on sharing economy platforms," Research Policy, Elsevier, vol. 50(3).
    14. Kähkönen, T. & Blomqvist, K. & Gillespie, N. & Vanhala, M., 2021. "Employee trust repair: A systematic review of 20 years of empirical research and future research directions," Journal of Business Research, Elsevier, vol. 130(C), pages 98-109.
    15. Paolo Coccorese & Giovanni Ferri & Punziana Lacitignola & Juan Lopez, 2016. "Market structure, outer versus inner competition: the case of Italy’s credit coop banks," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 63(3), pages 259-279, September.
    16. Timm Teubner & Marc T. P. Adam & Florian Hawlitschek, 2020. "Unlocking Online Reputation," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 62(6), pages 501-513, December.
    17. Lars Hornuf & Matthias Schmitt & Eliza Stenzhorn, 2017. "Equity Crowdfunding in Germany and the UK: Follow-up Funding and Firm Failure," CESifo Working Paper Series 6642, CESifo.
    18. Hossain, Mokter & Mozahem, Najib Ali, 2022. "Drivers’ perceptions of the sharing economy for transport services," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    19. Izabela Jonek-Kowalska & Radosław Wolniak, 2022. "Sharing Economies’ Initiatives in Municipal Authorities’ Perspective: Research Evidence from Poland in the Context of Smart Cities’ Development," Sustainability, MDPI, vol. 14(4), pages 1-22, February.
    20. Massimo G. Colombo & Benedetta Montanaro & Silvio Vismara, 2023. "What drives the valuation of entrepreneurial ventures? A map to navigate the literature and research directions," Small Business Economics, Springer, vol. 61(1), pages 59-84, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:149:y:2022:i:c:p:327-339. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.