Trust Mechanisms in the Sharing Economy

Abstract

Trust is changing its shape from local to institutional and now to be distributed. The sharing economy is one example of distributed trust enabled through technology. At the same time, the risk is perceived as high in the sharing economy due to transactions between strangers. The extant research investigating how trust is developed in the sharing economy needs to be expanded. The dynamic landscape of trust, risk perception, and the limited incidence of trust mechanism research in the sharing economy call for research to investigate the effects of different trust-inducing mechanisms on the sharing economy’s performance. Employing the stimulus-organism-response model as the theoretical lens and reviewing the literature on trust in the sharing economy, the current conceptual research categorizes the trust-inducing mechanisms: (a) the platform, (b) interpersonal, and (c) third-party trust mechanisms. In so doing, it advances two theory and practice-based propositions: (1) platform, interpersonal, and third-party trust-inducing mechanisms spur sharing economy performance by mitigating the risk perceived by peers, and (2) these trust mechanisms spur sharing economy performance by fostering trust in the platform, which mitigates the risk perception of using the platform. Thus, this research highlights the importance of trust mechanisms in enhancing sharing economy performance. It offers valuable insights for future research on trust-building strategies and their impact on user engagement and platform success.