Online reverse auctions and the dynamics of trust

This research explores the effect of the introduction of online reverse auctions (ORAs) on interorganizational trust between buyers and suppliers in the retail industry. Building upon the notion of the spirit of the technology and the organizing vision, we shed light on the "equivoque" nature of ORAs. In an integrative model, we show how the desocialization associated with the introduction to ORAs can lead to distrust. Our findings show specifically the importance of the role played by technical problems and rumors.