Factors influencing trust and partnership in shipper-carrier relationship: How do these affect electronic trading transactions in South Korea?

Abstract

In electronic trading transaction, forming trust is very important in business relations due to its anonymity feature or the many non-face-to-face transactions with numerous and unspecified interested parties. This study centered on the importance of trust and partnership in shipper-carrier relationships for the vitalization of electronic trading transactions in South Korea. Thus, this study aimed to identify the characteristics of cooperative relations between interested parties through trust and partnership, focusing on the carriage contract between shipper and carrier under an environment of electronic trading transactions. Specifically, this study drew determinants influencing the trust and partnership between shipper and carrier in electronic trading transactions through an empirical analysis of Korean trading companies. In terms of transaction cost, there may be an impact of transaction frequency on trust. Marketing literature judges that trust is formed when the seller tries to build up a trust relationship and when man-to-man interaction takes place frequently between the buyer and the seller. Also, in terms of the theory of relational contract, there may be significant impact on the formation of trust such as commercial information interchange and human networks, etc. To sum up, cooperation in transactions is influenced by trust in a carriage contract under electronic trading transaction, and trust is influenced by the frequency of transactions with a specific carrier, the specific carrier's capability to provide service, the specific carrier's sincerity, the specific carrier's reputation and the size of the business.