The Impact of Sellers' Trust in Buyers on Sellers' Intention to ...

The International Journal Of Management

27 Vol 8 Issue 1 (January, 2019) www.theijm.com

The Impact of Sellers’ Trust in Buyers on Sellers’ Intention to Trade through Its Antecedent’s Factor

1. Introduction

Cross-border business brings many opportunities in emerging markets (Leonidou & Hultman, 2019). SME’s are focusing on cross-border businesses by using the e-commerce as compare to local competitors. The trend of Global online e-commerce is increasing day by day, which is also performed by using the third-party. In cross-border e-commerce, the sellers facing the lot of challenges to fulfill the requirement of buyers(Cui, Mou, Cohen& Liu, 2019). They also need to meet the criteria of third-party which plays a mediator role between the sellers and buyers. Local markets have the small challenges as compare to the cross-border markets. The trading platform which is commonly used in SME’s is the third-party platform (e.g daraz.pk) and share some information to buyers to increase the trust of buyers on the platform.

Buyers’ trust is very important for successful e-commerce(Hallikainen & Laukkanen, 2018). Sellers’ trust on buyers and buyers’ trust on sellers is the key factors in e-commerce (Nica, 2015). Satisfaction and trust in e-Commerce. But now-a-days chargeback fraud is breaking the trust of sellers in buyers because today world the credit card is mostly using in e-commerce and most experiences recorded as chargeback fraud (Guo, Bao, Stuart & Nguyen, 2018). In this case sellers face huge loss if buyers not satisfied the product which they have seen on the third-party platform and they claim to refund their money. Cui, Mou, Cohen, and Liu, (2018) basically, the third-party gives more advantages to the buyers in different

ISSN 2277- 5846

THE INTERNATIONAL JOURNAL OF MANAGEMENT

Kalim Ullah Ph.D. Research Scholar, Department of Management Science & Engineering,

School of Economics & Management, Xidian University, Xian. China Du Rong

Professor, Department of Management Science & Engineering, School of Economics & Management, Xidian University, Xian. China

Dr. Hira Batool Department of Management Science & Engineering, Xidian University, Xian, China

Abstract: This paper target the issues of raising seller’s trust in buyers in order to promote the sellers’ intention to trade in cross-border businesses in Pakistani culture. This study is the sub-part of the project that basically aims to study why and how the chargeback fraud is going on in Pakistani cross-border businesses. As the result of the study the researcher found that due to the phenomena of chargeback fraud the seller trust in buyers has been diminished and ultimately de-promoting the present sellers and future business seekers interest in cross-border businesses. So, in this article the researcher proposed some of the variables including national integrity, credit card payments, seller-driven certification and disposition to trust as factors that can helpful an increasing sellers’ trust in buyers. The data was collected through simple random sampling from 300 online sellers. The analysis was done through PLS by using the bootstrapping method. The analysis showed that all of proposed variables do have direct positive influence in enhancing sellers’ trust in buyers and ultimately shows improved number of sellers’ intention to trade. Keywords: National integrity, seller trust, seller intention to trade, trust disposition, pakistan, chargeback fraud

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perspectives like if they are not satisfied with the products then they can claim for refund but sometimes buyers make the friendly fraud. In the SME’s e-commerce, the mechanism of chargeback played an important role to boost the trades. However, the sellers’ trust in buyers diminishing due to the chargeback fraud and they are going to left the third-party platform. In the chargeback fraud sellers’ bear double loss like product and charges (Guo, Bao, Stuart& Nguyen, 2018). Sometimes buyer also leave the negative comments against the sellers which also affect the sellers’ creditability among the sellers, buyers and on the third-party platform. So, the sellers’ trust on buyers is very important to build strong relationships for successful trading. 2. Literature Review 2.1. Trust in Cross-Border E-Commerce

Literature tells us about trust in different perspectives that the third-party should play an active role for the sellers’ trust in buyers and assure that buyers will not make any chargeback fraud. Trust is an important factor in cross-border e-commerce for all parties whether it is sellers-buyers or third-party for successful trade (Liu, 2018). 2.2. Signaling Theory

Signaling theory derived from economic research. Information signaling theory focus on sellers and buyers’ information when they made any transaction (Su, Peng, Tan & Cheung, 2016). Sellers don’t know the financial position of buyers whereas buyers don’t know the quality of products of sellers. Acs, Szerb & Autio, (2017) Signal and indices are two types of information which is necessary for market activities. To develop the sellers’ trust in buyer, it’s the important factor to share the information of buyers with sellers by the third-party platform in cross-border electronic commerce. In this study, buyers’ attributes are indices that are fixed (e.g country of buyers) and the signal as characteristics that can be changes by buyers at specific costs (in daraz.pk). Xiao, Guo, Ambra and Fu, (2016) Sellers’ trust influenced in buyers by signal and indices. 2.3. Seller’s Trust-in-Buyer: A Conceptual Framework

In the international e-commerce context, a conceptual framework developed by using Information Signaling Theory and Trust Theory. 2.3.1. Perceived National Integrity

The information which is released by the third-party electronic commerce platform about the country of buyer is very important. Huang, and Chang, (2017) According to information, two attributes of buyers’ meet the indices definition that are legal structure and national integrity levels in the residence country of buyers. These indices influence the sellers’ perception of culture, norms or buyers’ country institutional structures which affect the trust of sellers in buyers. Social norms habitually avoid individuals from contributing nonstandard behaviors. Hasbullah, Osman, Abdullah, Salahuddin, Ramlee and Soha, (2016) that’s why sellers’ think that the people from buyers’ country have good and positive behavior. National integrity is identified as the necessary factor of trust whether it is used as variable. In this study, national integrity is used as construct to capture the country of buyers’ residence attributes to influencing the sellers’ trust formation. In this study, national integrity refers to the country level illustration that the people of the specific country are measured to behave in a good manner. If the national integrity of a country is higher that the behavior of buyers are acceptable. Guo, Le-Nguyen, Jia and Li, (2015) if national integrity of a county is low, the deviant behavior not seriously unacceptable and could be tolerated. Individuals’ integrity might be considerably influenced by national integrity. 2.3.2. Trust Disposition

Trust disposition means that person willingness to lean on others in various situations (Wang, Ngamsiriudom& Hsieh, 2015). The majority of the people generally perceive that overall people are trustworthy and their behaviors are in line with the society norms. But, some of the reported studies in literature quoted trust disposition as trust propensity. That’s why this study proposed research hypothesis H2. While comparison in disposition to trust, organization level, trust means that how people believe in the firm structural value for making one successful. Although in cross-border businesses due to the vast numbers of multiple sellers on same platform, sellers need to keep on their attraction of trust toward the buyers. For that purpose, this study proposed two types of factor attracting buyers trust: credit card imbursement guarantee and driven of seller certification. 2.3.3. Credit Card Imbursement Guarantee

Koulu, (2016)Now-a-days increasing the trend of e-commerce which sometime turn to chargeback fraud but in developed countries, third-party platform protect their sellers to chargeback or fraudulent behavior of buyers which terminate the unlawful behavior of the buyers but in under developing countries like Pakistan seen such cases of that chargeback fraud (e.g. Darak.pk).The purpose of this study, the buyers trust in sellers could increase by the third-party




platform to protect behavior. Third-party platform can increase the sellers’ trust in buyers to make policies for sellers. The result will lead as H3. 2.3.4. Seller-Driven Certification

Compelling criticism components can enable purchasers to set up the trust in explicit merchants. Researchers thought of purchaser driven certification alluding to the degree to which purchasers see that a criticism framework can give exact and solid data about a dealer's past exchanging action. Truth be told, most outsider online exchange stages, for example, daraz.pk embraces a shared input instrument so merchants may leave suppositions about their exchanges with buyers also. We contend that such confirmation frameworks can collect and spread signals about buyers' past exhibition that may furnish merchants with a premise to construct trust in buyers. They can be all things considered seen as a surrogate for the notoriety of buyers in the commercial center to help assemble venders’ trust. Buyers’ notoriety and remarks spoke to by sellers might be seen as powerful records (Maity, Jha, Kumar, Sengupta, Modi & Mukherjee, 2016). This prompts H4. 2.3.5. The Consequences of Seller’s Trust

Earlier investigations recommended that trust convictions could advance to trust-related expectations. Adjusting the researcher meaning of confiding in expectations to our unique circumstance, we characterize confiding as a seller’s aim to offer items to the purchaser who has made an idea for the item. We expect a seller’s purchaser choice to be identified with his/her trust in a buyer. The seller’s trust in a purchaser gives confidence that the purchaser couldn't take an interest in false conduct subsequent to accepting items or administrations(Huurne, Ronteltap, Corten & Buskens, 2017). In this way, a seller is bound to get a buyer’s offer (for example, installment) in whom the person in question has more trust. This prompts H5. 2.4. Conceptual Framework

Figure 1: Conceptual Framework

2.4.1. Proposed Hypothesis

H1: National Integrity has a positive impact on Seller intention to trade through seller’s trust in buyers. H2: Credit Card Payment Guarantees has a positive impact on Seller intention to trade through seller’s trust in buyers. H3: Seller-Driven Certification has a positive impact on Seller intention to trade through seller’s trust in buyers. H4: Trust Disposition has a positive impact on Seller intention to trade through seller’s trust in buyers. H5: Seller’s Trust in Buyers has a positive impact on Seller intention to trade.

3. Methodology

In this study, researcher target population is five thousand and the sample size is three hundred online sellers because of their willingness of interest toward our research study. The adopted questionnaire used for data collection and techniques is used through simple random sampling. This examination focused on the online dealers enrolled on the Daraz.pk site. The respondents were approached to fill oneself managed the survey embraced from past investigations. 4. Data Analysis

For data analysis the PLS 3.2.8 version was utilized for one month trial. Scale reliability and validity was first assessed by creating a model as seen in the Figure 2. All the values of composite reliability and individual factor reliability fully satisfied the limit of above 0.7, as seen in Table 1 and Table 2. The value of AVE that represents convergent validity reported under the Table 1 has a minimum of 0.5 values. As availing the updated version which also offers the graphical illustration of composite reliability and ave value, the researcher presented in Figure 2 and in the Figure 3 to make sure the authenticity and reliability of research scale and collected responses. The discriminant validity reported under the Table 3 illustrated that the standard of diagonal and non-diagonal are 1 and less than 1. As for as the t-statistics are concerned, all the t values are above 1.96 which given strength to our proposed model for raising seller trust in buyers. The values of t-statistics are reported in the Table 4.




The coefficient of determination tells us that by adding the seller trust in buyers, the problem of seller intention to trade can easily be solved. As seen in the Table 5, the all the proposed dimensions for adding seller intention to trade are just explaining the phenomena up to 12.4% but the proposed dimensions through seller trust in buyers can increase the explanation up to 46%.

Figure 2: Diagrammatic Illustration of Model

Cronbach's

Alpha Composite Reliability

Average Variance Extracted (AVE)

Credit Card Payment Guarantees 0.758 0.819 0.587 National Integrity 0.832 0.889 0.669

Seller intention to trade 0.753 0.843 0.644 Seller's trust in buyers 0.912 0.938 0.791

Seller-driven certification 0.818 0.881 0.714 Trust Disposition 0.926 0.797 0.568

Table 1: Composite Reliability & AVE

Credit Card Payment Guarantees

National Integrity

Seller intention to trade

Seller's trust in buyers

Seller-driven certification

Trust Disposition

CCPG1 0.796 CCPG2 0.718 CCPG3 0.782

DT1 0.736 DT2 0.725 DT3 0.797 NI1 0.868 NI2 0.896 NI3 0.753 NI4 0.744

SDC1 0.936 SDC2 0.779 SDC3 0.812 SIT1 0.904 SIT2 0.794 SIT3 0.996 STB1 0.886 STB2 0.897 STB3 0.899 STB4 0.886

Table 2: Dimensions Factor Loadings




Credit Card Payment

Guarantees

National Integrity

Seller intention to trade

Seller's trust in buyers

Seller-driven certification

Trust Disposition

Credit Card Payment Guarantees

0.766

National Integrity -0.412 0.818 Seller intention to trade 0.351 -0.331 0.802 Seller's trust in buyers -0.464 0.589 -0.363 0.89

Seller-driven certification 0.122 0.042 0.015 -0.193 0.845 Trust Disposition -0.358 0.606 -0.299 0.529 0.113 0.753

Table 3: Discriminant Validity

Original Sample

(O)

Sample Mean

(M)

Standard Deviation (STDEV)

T Statistics (|O/STDEV|)

P Values

Trust Disposition -> Seller's trust in buyers 0.268 0.288 0.108 2.476 0.014 Seller-driven certification -> Seller's trust in

buyers -0.214 -0.213 0.085 2.507 0.012

Seller's trust in buyers -> Seller intention to trade -0.363 -0.383 0.066 5.478 0 National Integrity -> Seller's trust in buyers 0.354 0.34 0.137 2.580 0.01

Credit Card Payment Guarantees -> Seller's trust in buyers

-0.196 -0.19 0.089 2.191 0.029

Table 4: T-Statistics

R Square R Square Adjusted Seller intention to trade 0.132 0.124 Seller's trust in buyers 0.483 0.462

Table 5: Coefficient of Determination

Figure 3

Figure 4




5. Discussion Hypothetically, this investigation may add to the IS writing of online trust. By inspecting a seller's selling conduct aim,

we may stretch out general trust research to a moderately new research setting. We hope to give a reciprocal point of view of current trust hypothetical models for a superior comprehension of sellers' selling conduct. Basically, this examination may help outsider stages comprehend what prompts sellers to get online installment and offer items to purchasers and addition significant bits of knowledge into how to build up a compelling on the web exchange instrument. 6. References

i. Leonidou, C. N., & Hultman, M. (2019). Global marketing in business-to-business contexts: Challenges, developments, and opportunities.

ii. Cui, Y., Mou, J., Cohen, J., & Liu, Y. (2019). Understanding information system success model and valence framework in sellers’ acceptance of cross-border e-commerce: a sequential multi-method approach. Electronic Commerce Research, 1-30.

iii. Hallikainen, H., & Laukkanen, T. (2018). National culture and consumer trust in e-commerce. International Journal of Information Management, 38(1), 97-106.

iv. Nica, E. (2015). Satisfaction and trust in e-Commerce. Psycho-sociological Issues in Human Resource Management, 3(1), 107-112.

v. Guo, Y., Bao, Y., Stuart, B. J., & Le‐Nguyen, K. (2018). To sell or not to sell: Exploring sellers' trust and risk of chargeback fraud in cross‐border electronic commerce. Information Systems Journal, 28(2), 359-383.

vi. Cui, Y., Mou, J., Cohen, J., & Liu, Y. (2018). Understanding IS Success Model and Valence Framework in Sellers’ Acceptance of Cross-border E-commerce. WHICEB 2018 Proceedings, 39.

vii. Guo, Y., Bao, Y., Stuart, B. J., & Le‐Nguyen, K. (2018). To sell or not to sell: Exploring sellers' trust and risk of chargeback fraud in cross‐border electronic commerce. Information Systems Journal, 28(2), 359-383.

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economies. Journal of business Ethics, 134(3), 479-491. x. Acs, Z., Szerb, L., & Autio, E. (2017). The global entrepreneurship index. In Global Entrepreneurship and Development

Index 2016 (pp. 19-38). Springer, Cham. xi. Xiao, L., Guo, Z., D’Ambra, J., & Fu, B. (2016). Building loyalty in e-commerce: Towards a multidimensional trust-based

framework for the case of China. Program electronic library and information systems, 50(4), 431-461. xii. Karasek III, R., & Bryant, P. (2012). Signaling theory: Past, present, and future. Academy of Strategic Management

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