The influence of institutional mechanisms when trusting the sharing economy
South African Journal of Business Management
| Field | Value | |
| Title | The influence of institutional mechanisms when trusting the sharing economy | |
| Creator | Ramphal, Avikaar Mthombeni, Morris Chipp, Kerry | |
| Description | Purpose: This study examines whether trust in the sharing economy (SE) is driven more by decentralised, peer-based mechanisms (normative or cultural-cognitive institutions) or centralised regulatory authority.Design/methodology/approach: Structural equation modelling was performed to test a multi-level trust model using data from 635 respondents exposed to a between-subjects experimental vignette online survey.Findings/results: The mechanisms of peer pressure, micro-level platform reputation, and meso-level platform brand assurance are the primary drivers of consumer trust and participation intention. The authority of macro-level independent regulation plays a significantly weaker role. The collective judgement of peers holds more sway for consumers than the oversight of formal authorities in establishing SE legitimacy.Practical implications: Service providers must prioritise curating excellent platform reputations, as high peer ratings are a de facto market requirement. Platforms should strengthen their brand’s perceived reliability. Policymakers should adopt a nuanced regulatory approach, recognising that traditional top-down assurances are less influential than decentralised, social proof mechanisms for legitimising most SE services.Originality/value: This is one of the first studies to integrate and contrast trust-building institutions across micro-, meso- and macro-levels within a single SE framework. It provides empirical evidence that normative and cultural-cognitive institutions are more effective than regulatory ones in legitimising the SE, highlighting a pivotal shift in how trust is established in digital, peer-to-peer markets. | |
| Publisher | AOSIS | |
| Date | 2026-04-10 | |
| Identifier | 10.4102/sajbm.v57i1.5686 | |
| Source | South African Journal of Business Management; Vol 57, No 1 (2026); 15 pages 2078-5976 2078-5585 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://sajbm.org/index.php/sajbm/article/view/5686/3674
https://sajbm.org/index.php/sajbm/article/view/5686/3675
https://sajbm.org/index.php/sajbm/article/view/5686/3676
https://sajbm.org/index.php/sajbm/article/view/5686/3677
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