Ways of Building Trust in E-Work 

Chiyoko SHIMOZAKIKobe University of Commerce, Department of Business Administration

Kobe, Japan, Kunihiro WATANABE

Nara Sangyo University, Faculty of EconomicsNara, Japan

Noriko KINEZAKINara Sangyo University, Faculty of Business Administration

Nara, Japan

Telework 2003 at Sao Pauro(August 24-27)

1.Introduction• Now we are living or working in the society with a

ffluent Trust.• How will Trust be in the virtual society(e-busines

s, Telework)?• When new business system using IT could give us

only utility or value without Trust, could we accept them?

• Trust is also one of necessary conditions on the virtual world.

• In this paper, we intend to show the importance of Trust in the virtual society and some ways of building Trust.

2. Trust as a Key Factor on Business

• When there is no trust in the society, how is the world? No business or big transaction cost

• Business law to protect contracts on business is necessary in order to do business well.

• Not only Trust can be built, but also the level of human relations among people affects Trust.

Culture

3. The transaction in the real world and in the virtual world

• Ways of building trust in a real world and a virtual world– Common point No Trust is no business.– Deference point

• Real world Face to face communication • Virtual world No face to face communication

4. First virtual Transaction

• Meaning= To transact with the person who he /she cannot meet directly, about the goods that he cannot touch or watch directly.

• Some new ways of confirming trust for the person or goods on the virtual space. – The buyer collects information about seller’s reputation

or transaction history. – We need an information provider about reliability on

the virtual transaction. – If you can trust a person perfectly, what he or she said

would be completely trustworthy to you.

High Trust relation in Japan

• OKIGUSURI(Medicines keeping in home)

SENRI GONOW(a payment after utility )– A salesperson of medical dealers delivers each

home a medicine chest filled with many kinds of medicines.

– The payment of consumed medicines used to be done when the salesperson comes to fill up the medicine chest once a year

5. Some Ways of building Trust about the goods and the dealers

Ａ . 　 Technical Guarantees

• ＩＳＯ／ｒｅｇｕｌａｔｉｏｎｓ

Ｂ． A social reliability

• Ｐ ower of Brand

• Trust in Community

• Trust is an essential element as well as Value, when a new business opens.– The case of B to C transaction

– The case of B to B transaction

6-1. Trust can create a new business

6.1 The case of B to C transaction

• The case of Company H （ Used car company ）– Developing a new virtual way of used car sales by new

laser disk system – By this laser disc system, they showed their customers

digital information such as specifications, features, some pictures of used cars and so on

• New value and new Trust for customers– Value----Saving much time looking around – Trust ----1.Some guarantees(one year guarantee /a payback guarantee/road service) 2.Registering all used car sold in this company

6-2. Web Auction

• Trust information must be showed to each person. – The person’s selling and buying history – The information about evaluation of each

transaction

• Guarantees for the goods with troubles discovered after the transaction.

The case of B to B transaction

• The virtual network among SOHO – Some human networks -----a loosing organization with tacit

database with skills and tasks performed by each SOHO

• Difference between B to B relation and B to C relation? – Perfect trust must be built in the SOHO network(B to B) – Only the guarantee of each company and each goods is

enough to transact in the case of B to C.

• Value chain ＝ Trust chain• SOHO regards face-to-face communication as an

important means in order to verify partner’s trust level.

7. Conclusion ------ Some implications for Telework

• Trust in B to B --- Before their transaction

• Trust in B to C --- After their transaction

• Telework = B to B business– Trust relationship between a teleworker and his

manager must be connected before he will start teleworking