Management of Trust in the Sharing Economy and its Effect on Sociology

Abstract

Purpose - This study is to explore how trust in the peer-to-peer sharing economy should be managed in the different stages of the sharing business and to show how the trust in the sharing economy would affect sociology. Design/Methodology/Approach – A conceptual framework was introduced to explain how trust in the sharing economy could be managed effectively in the context of the moderating and monitoring role of the platform. This paper also develops an argument on how trust in the sharing economy could affect sociology through third party monitoring role of platform. Findings – First, trust should be increased between peers by platform providers, in the introduction stage of the sharing business. Second, in the maturing stage of the sharing economy, balancing trust between peers is more important than just increasing the trust level. Third, trust management in the sharing economy could enhance the trust level in society through a platforms’ third party certifying position at a lower cost. Research Implications or Originality – These findings offer implications to academics, practitioners and policy makers. Academics may empirically verify the implications of the conceptual trust model through the stages of the development in the sharing economy. Practitioners may apply the monitoring framework of the platforms to their sharing businesses. Policy holders may find motivations to open the sharing economy which might enhance interpersonal social capital.