Abstract

While electronic commerce radically accelerates business transactions and interactions, e-marketplace providers constantly face the challenge in attracting critical mass of participants. Previous studies suggest that trust is the prerequisite to online transaction and interaction. The purpose of this research is to explore relational factors in influencing e-vendors’ decision in terms of developing long term business relationship with e-marketplace. Based on trust-commitment theory, this research proposes e-marketplace reputation and reference groups as antecedents for developing e-vendors’ trust in e-marketplace providers and consequently lead to relationship commitment. Based on responses of 162 active e-vendors, the result reveals that e-marketplace reputation and reference groups contribute to trust of e-marketplace providers. Furthermore, e-vendors’ trust in e-marketplace providers has an impact on long-term business relationships. The research findings provide actionable guideline for e-marketplace provider.

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