Supporting retailers to exploit online settings for internationalization: The different role of trust and compensation

Abstract

The development of virtual technologies discloses two main opportunities for retailers, namely the possibility of complementing their offer through a multi-channel strategy in the marketplace they operate, and of extending their business in foreign countries. The online internationalization strategy requires retailers to overcome customers' privacy concern facilitating their information sharing with the firm so as to conclude the online transaction. This paper aims at helping retailers in reaching this goal by investigating the effect on behavioural information sharing in online settings of two variables emerged as relevant in literature: trust and compensation (as a form of incentive). The results of an experimental study show the key role of trust on increasing online information sharing. © 2010 Elsevier Ltd.