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Karake-Shalhoub uses agency theory to ground her empirical analysis of more than 100 e-commerce firms in this highly readable examination of trust in e-commerce relational exchanges. She identifies several trust-building measures, including privacy statements, the existence of a chief privacy officer, and a trusted third-party seal of approval; companies are then evaluated based on an index of those trust builders. She demonstrates that there is a positive relationship between management ownership and trust, and that managers who fail to protect the interests of their stockholders-as well as their own-will never gain customer loyalty. Any business considering a move into e-commerce, or re-evaluating an earlier investment in online marketing and retailing, will benefit greatly from Karake-Shalhoub's insights.
The timeliness of this study-the first of its kind-and its unique agency-theory perspective allow for an analysis of the appropriateness of e-business and e-commerce for certain businesses. What are e-commerce businesses that are developing loyalty and building trust doing differently than their less successful competitors? How are successful companies moving from traditional applications to the new breed of integrated e-commerce architectures? Karake-Shalhoub answers these and other pressing questions for senior and mid-level managers and strategic planners, corporate executives charged with incorporating an e-commerce strategy into their long-range plans, chief privacy officers, regulatory policymakers, and students of e-commerce, customer relationship management, and online marketing.
List of contents
Preface
Establishing the Context
Trust in Electronic Commerce
Electronic Commerce: A Review
Information Technology, Agency Theory, and Control
Methodology and Development of Hypotheses
Empirical Investigation
Where Do We Go from Here?
Bibliography
Index
About the author
ZEINAB A. KARAKE-SHALHOUB is Professor of Management at the Catholic University of America. She is the North American Editor of the Logistics Information Management Journal and the Management Decision Journal and the author of Technology and Developing Economies (1990) and Information Technology and Management Control (1992), both published by Praeger.
