Purpose: The sharing economy is the internet-enabled business model that has changed the way people travel, work and interact. Similar to other internet-enabled settings, trust is of paramount importance for the sharing economy as it leads to continued use and positive word-of-mouth. The main objectives of this research are twofold: (1) to identify the most relevant antecedents of trust in the sharing economy; and (2) to identify which combination of these antecedents allows repurchase intention and positive word-of-mouth to be achieved.Design/methodology/approach: Through revision of trust theories and complementary frameworks, and an analysis of the sharing economy, the authors develop a model of trust for the sharing economy. The authors propose a model assuming that different types of trust will form a limited number of pathways valid for the creation of positive behavioural intentions. The authors use qualitative comparative analysis to empirically assess the proposed model on a sample of 235 sharing economy users.Findings: The authors find two configurations that jointly suggest the key role of website quality and usability in generating consumer trust. The authors propose that, on the one hand, platforms might focus on creating value-added services and increasing the reliability of the platform brand. On the other hand, platforms can focus on creating good signalling mechanisms and educate their service providers towards reliable behaviour.Originality/value: The authors build a conceptual model of trust in the sharing economy setting, that considers the feedback loops among the combination of several dimensions. The authors define specific strategies for platforms in the sharing economy that lead to repurchase intention and positive word-of-mouth.
There is a growing demand for sustainable business practices and for sustainable and impact investment as has been signaled by the Sustainable Development Goals ratified by all the United Nations members. However, there is not that much evidence on how sustainable investments perform during crises compared to regular investments. This paper investigates if sustainable investments within the NASDAQ have a lower volatility rate when reacting to a significant global crisis such as the COVID-19 pandemic. It groups the shares of businesses with Corporate Social Responsibility (CSR) practices that are ranked 70% or higher given by CSRHub, Inc. and compares it to business shares with the lowest-ranked CSR business practices at 30% or lower. The top 30% and bottom 30% CSR stocks’ volatility will be predicted using variations of the GARCH model. The top 30% CSR stocks of the NASDAQ had a lower rate of volatility for a global crisis than the bottom 30% CSR stocks. Technology is the only sector whose top 30% showed higher volatility. However, the top 30% of companies in the Health Care and Utilities sectors show a higher increase in returns and a lower drop in returns. These results signal the higher uncertainty associated with some cutting-edge products and services offered by the top 30% of technology companies and the preference for more established companies that offer higher quality services when it comes to satisfying basic needs such as health and utilities in difficult times.
Online secondhand markets have been growing substantially over the last decade and are expected to grow further. In order to effectively promote the growth of online secondhand markets, this paper designs and validates a scale to assess customer perception of the service quality of secondhand products purchased via online platforms. Complementarily, the paper assesses how each of the different dimensions that configure the scale contributes to explaining the fulfillment of customers’ expectations. The scale is defined by 23 items and is arranged in 5 dimensions from the literature on online commerce as well as on the sharing economy. A sample of 200 questionnaires is used for exploratory factor analysis. A second sample of 507 users is used for confirmatory factor analysis. The quality perceived by online customers of secondhand products depends on the quality of the interactions that they have with the website, with the vendor, and with the product. The dimension that contributes the most to customer fulfillment of expectations is product quality. Findings identify the items that contribute the most to quality perception and fulfillment of expectations, facilitating the development of more effective strategies for platform owners and vendors who want to attract and retain customers of secondhand products. Complementarily, these findings are useful to businesses and governments that want to promote a more sustainable economy by reducing consumption of new products and promoting reutilization of existing ones.