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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
JANURAY 2011
VOL 2, NO 9
Perceived Integrity (PI): perceived integrity refers to the perception of Internet users on the
honesty of Internet vendors.
Perceived Competence (PC): Perceived competency, in this study, is defined as the Internet
consumer‘s perception on the skills, abilities, and expertise of Internet vendors.
11.2. External Environment
Third Party Recognition (TPR): third party recognition refers to the assurance of the
trustworthiness of Internet vendors by third party recognition bodies.
Legal Framework (LF): legal framework refers to the law and code of practice established to
protect Internet shoppers during electronic transactions.
11.3. Propensity to Trust (PTT)
Hofstede (1980) express that Propensity to trust is a stable, within-party factor that affects the
likelihood that a party will trust another party. People with different cultural backgrounds,
personality types, and developmental experiences vary in their propensity to trust.
11.4. Consequence of Trust: Perceived Risk (PR)
In this study, perceived risk refers to the Internet users‘ perception on the possibility of
yielding unexpected outcomes with undesirable consequences. Many prior studies from Dion
et al., 1995; Doney & Cannon, 1997; Morgan & Hunt, 1994; have discovered a strong relation
between risk and the concept of trust. As suggested by Selnes (1998), perceived risk in a
buyer-seller relationship is reduced by trust. (Fazlollahi, b., 2002, pp. 128-132).
Trustworthiness of Internet Vendor
Perceived Security Control
Perceived Privacy Control
External Perceived Environment Integrity
Perceived Competence
Third Party Recognition
Legal Framework
Cultural
Environment
Trust in
Internet
Shopping
Propensity to
Trust
Experience
Perceived
Risk
Figure 11. A conceptual model of trust in Internet shopping.
Source: Fazlollahi, B., 2002, P. 129
With regard to the importance of trust in e-business, various studies have been done
concerning e-commerce e-banking, and e-government. Table 1 summarizes e-trust models.
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