Buyers' institution-based trust in South African C2C e-commerce : a social capital theory perspective

Abstract

Consumer-to-Consumer (C2C) e-commerce has grown substantially since the rise of the internet as it provides a means for individuals to effectively buy and sell goods between one another without the need for re-sellers. Using social capital theory, this study aims to understand how the dimensions of social capital in the South African environment effect buyers willingness to transact in C2C e-commerce. Through this understanding, the study then analyses the current institutional mechanisms employed in order to compare and contrast the extent to which these mechanisms are able to facilitate efficient C2C transactions. Twelve buyers using C2C websites to purchase goods were interviewed for the study. Through understanding social capital in a South African context, the results demonstrate the extent to which current institutional mechanisms are ineffective in facilitating buyers trust and willingness to transact. These findings will assist C2C websites in building effective institutional mechanisms. The theoretical contributions and practical implications are discussed.