Effects of culture on online initial trust: Individual level analysis

This is an exploratory work on the relationship between online initial trust and culture. Little work has been done on how culture influences one's online trust perceptions. In IS research, culture is mostly studied either at the national or at the organizational level. This study captures culture at the individual level on a website. Four culture dimensions (masculinity/femininity, individualism/collectivism, power distance and uncertainty avoidance) proposed by Hofstede (1980) are investigated. The McKnight et al. trust model (2002) is used as the basis of this study. Subjective norm (SN) is also integrated in the trust and culture model. Structural equation modeling was used in the model analysis.;First, the initial online trust model of McKnight et al. was successfully replicated in a tourism context. Then, the McKnight et al. trust model was augmented by subjective norm. I propose from the 'Theory of Reasoned Action' (Fishbein and Ajzen 1975) that SN is a critical variable in trust formation and trust intention. My data showed that SN directly impacted all four trust constructs (disposition to trust, institutional trust, trusting beliefs, and intention to trust). Furthermore, SN is found to be a positive covariate of all culture variables; thus, all culture variables indirectly affect trust formation and intention through SN. Two culture dimensions (power distance and uncertainty avoidance) also directly affected three trust constructs, but not intention to trust. The dimensions of masculinity/femininity and individualism/collectivism had no direct effects on trust formation.;My results showed that SN, in particular peer perception, has the most significant effects on initial online trust formation. Furthermore, a person high in uncertainty avoidance (UA) has the strongest association with SN. Thus, not only does s/he take cues from others more, but also has a more trusting disposition and forms trusting beliefs more easily than a person low in UA.;The unequivocal properties of the UA construct were also discussed. Two types of UA are proposed; "UA need for structure" and "UA need for avoiding uncertainty". The UA construct that the most literature refers to is analyzed as "UA need for structure". Further investigation of UA construct is suggested.