- Volume 20 Issue 4
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An Empirical Analysis of the Impact of the Institution-based Trust Factors on the Survival of E-commerce Companies in Korea
제도기반 신뢰요소가 한국 전자상거래 기업의 생존에 미치는 영향에 관한 실증 분석 연구
- Received : 2018.08.31
- Accepted : 2019.11.10
- Published : 2019.12.31
E-commerce in Korea has grown steadily in recent years. E-commerce has provided firms with an effective method to approach potential customers by overcoming geographical and physical barriers. However, despite the rapid growth, many e-commerce businesses closed their businesses and were not able to survive. This study aims to empirically examine the factors that determine the survival of e-commerce businesses in Korea. In particular, this study focuses on the factors related to the notion of institution-based trust that includes delivery, privacy, and security management. This research used the data set about 31,295 e-commerce businesses that have been registered in Seoul. We found that the e-commerce business that does not require extra personal information beyond the standard terms and conditions or provides a feedback mechanism by having an online board to submit a complaint has a higher chance of survival. In addition, the e-commerce business that has a secured web server, shows the specific information about the date of delivery, or provides escrow services is likely to survive longer than others. The research has extended the extant literature on the importance of trust in e-commerce by empirically examining the effects of the institution-based trust factors on the actual survival of e-commerce businesses.
Supported by : 연세대학교
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