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Title:
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TRUST IN DIGITAL TRANSACTIONS AND ITS ROLE AS A SOURCE OF COMPETITIVE ADVANTAGE IN THE NETWORK ECONOMY |
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Author(s):
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Christian Kittl , Otto Petrovic |
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ISBN:
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972-98947-1-X |
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Editors:
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Pedro Isaías and Nitya Karmakar |
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Year:
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2003 |
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Edition:
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2 |
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Keywords:
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Trust, competitive advantage, trust building components . |
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Type:
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Full Paper |
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First Page:
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21 |
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Last Page:
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29 |
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Language:
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English |
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Cover:
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Full Contents:
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click to dowload 
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Paper Abstract:
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The network economy is characterized by the fact that businesses increasingly work together with others when producing their products and services. In the past, one mainly tried to reduce the risk, which is linked to networking by means of digital transactions, through legal/technical control systems However, it has become more and more clear in the meantime that while the use of legal/technical control systems is indisputably important, all by itself it is fighting a losing battle. At the moment, the first signals of a beginning paradigm shift can be detected: thinking in the dimension of security is followed by thinking about the factor of trust as the ultimate and decisive indicator for the willingness to actually carry out transactions in the network economy. In the economics, organizational, and strategy literature trust is considered extremely important for many kinds of interaction. For instance, some economists argue that trust is an essential lubricant, without even the simplest form of economic exchange can not occur. But especially in the context of digital transactions trust is often seen as a factor that can only make one unhappy if missing, but not as something that can actually motivate one to actively carry out a digital transaction. The aim of this paper is to show that trust can actually generate a surplus value and how it can even become an important source for sustainable competitive advantage in the network economy. |
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