Distrust issues in business-to-business e-procurement decisions

Abstract

Purpose Despite the important role of distrust in predicting the intention to use, existing literature has not studied the impact of distrust on the buyer’s integration with suppliers and their e-procurement usage in the B2B context, creating major gaps in the e-procurement theory. The purpose of this paper is to fill the gaps in the literature by examining the role and impact of distrust in the e-procurement context. Design/methodology/approach Data were collected through a web-based survey of purchasing professionals in the USA. ANOVA was used to compare the level of distrust among companies. In addition, the measurement model and hypotheses were tested using the structural equation modeling method. Findings Empirical findings indicate if buyers have uncertainty or negative expectation on the reliability and capability of the supplier in e-procurement systems, they would tend to hesitate to use e-procurement for purchasing. Furthermore, distrust also inhibits buyers from strengthening the supplier integration through sharing operational and logistics information and collaborating in new product development and purchasing process. Research limitations/implications This paper discovers the vital role of distrust in the e-procurement context. Distrust has a significant impact on a company’s cooperation and commitment with business partners. Additionally, to improve the supplier integration, it is important not only to use e-procurement applications but also to have a mechanism to lower the buyers’ distrust level in e-procurement systems. Practical implications Realizing the important role of distrust, e-procurement vendors could improve the supplier selection process by allowing buyers to review the supplier’s reliability and capability, and to interact with the supplier before making any online purchase. Vendors could also build a better supplier verification system and collaborative mechanism to reduce buyers’ distrust issues. Originality/value Despite the important role of distrust in predicting the intention to use, existing literature has not studied the impact of distrust on the buyer’s integration with suppliers and their e-procurement usage in the B2B context, creating major gaps in the e-procurement theory. This paper fills the gaps in the literature by examining the role and impact of distrust in the e-procurement context.