Impact of Community-Based Governance Mechanisms on Transaction Intention on a Second-Hand Trading Platform

Abstract

Second-hand trading platforms are helpful to the recycling of resources. It is important to accelerate the construction of second-hand trading platforms and improve people’s willingness to buy second-hand goods. However, due to the uncertainty of second-hand goods, it is difficult to establish the trust between users and complete second-hand transactions. Nowadays, more and more platforms use community-based governance mechanisms to promote relationships between users. Taking the second-hand trading platform Xianyu as an example, this study explores the influence of three specific community-based mechanisms (interest group, feedback mechanism and dispute resolution mechanism) on trust and transaction intention from three dimensions of relational governance. This study compares the different effect between consumers and prosumers. Based on 721 valid questionnaires, a structural equation model was used to analyze the data. The results show that interest group, feedback mechanism and dispute resolution mechanism all have significant positive effects on trust in sellers and platforms. In addition, the impact of a dispute resolution mechanism on trust in sellers and platforms is higher for prosumers than for consumers. This study extends the previous research on community-based governance, contributes to the design of second-hand trading platforms and promotes more users to participate in recycling economy.