Abstract

Assessing the legitimacy of manufacturers is important for merchandise production delegations, particularly for resource-limited small businesses (e.g., fanwork artists). This challenge involves the principal-agent perspective, which implies two information problems: the expectancy formulation problem and expectancy disconfirmation problem. Whereas heuristic disclosure facilitates expectancy formulation, the expectancy disconfirmation problem may be mitigated by deliberative disclosure, particularly through non-immersive virtual reality (VR) manufacturer tours. However, the manner in which non-immersive VR features resolve the delegation challenge remains unclear. By leveraging a natural experiment within a manufacturer-to-business platform, we examine the causal effects of heuristic disclosure and VR-enhanced deliberative disclosure factors (i.e., video panorama and perspective interval). Our findings offer significant implications for both the literature and practice.

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