Exploring Conditional and Nonlinear Effect of Trust on Online Repurchase Intention - The Role of Perceived Effectiveness of Institutional Mechanisms

Previous research has presented mixed findings regarding the effect of trust on online repurchase intention in the business-to-consumer context. The primary purpose of this project is to add to the previous research by understanding how trust conditionally and nonlinearly influences online repurchasing intention. Specifically, we will focus on potential differential nonlinear impacts of trust on online repurchasing intention under different e-commerce institutional conditions. We propose the construct of perceived effectiveness of institutional mechanism (PEIM) to differentiate institutional conditions. Based on the theories of organizational trust, the economics theories, and the prior ecommerce literature, we hypothesize that trust will exert differential nonlinear effects on customer online repurchase intention under high versus low PEIM contexts. Specifically, the positive effect of trust on repurchasing intention is diminishing under a high PEIM condition as trust increases. Conversely, the positive impact of trust on repurchasing intention is enhancing under a low PEIM condition.