Internet-delivered e-services are increasingly being made available to consumers; however, little is known about how they are evaluated for potential adoption. Past research has focused primarily on the positive utility gains attributable to information technology adoption. This research extends that research approach to include measures of potential negative utility (losses) attributable to e-service adoption. Drawing from Perceived Risk Theory, specific risk facets were operationalized, integrated, and empirically tested within the Technology Acceptance Model to propose an e-services adoption model. Results indicate that e-services adoption is adversely affected primarily by performance-based risk perceptions, while perceived ease of use of the eservice reduces risk perceptions. The paper discusses the implications of integrating risk into the proposed eservices adoption model.

Abstract

Despite a decade since the inception of B2C e-commerce, the uncertainty of the online environment still makes many consumers reluctant to engage in online exchange relationships. 1 Elena Karahanna was the accepting senior editor for this paper. D. Harrison McKnight and Jonathan D. Wareham served as reviewers. The associate editor and the third reviewer chose to remain anonymous.

Over the last three decades, the prevailing view of information technology strategy has been that it isKeywords: Digital business strategy, scope of digital business strategy, scale of digital business strategy, speed of digital business strategy, digital business strategy value creation and capture

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Despite the wide use of reputational mechanisms such as eBay's Feedback Forum to promote trust, empirical evidence has shown conflicting results on whether online feedback mechanisms really induce trust and lead to higher auction prices. This study examines the extent to which trust can be induced by proper feedback mechanisms in electronic markets, and how some risk factors play a role in trust formation. Drawing from economic, sociological, and marketing theories and using data from both an online experiment and an online auction market, we demonstrate that appropriate feedback mechanisms can induce calculus-based credibility trust without repeated interactions between two transacting parties. Trust can mitigate information asymmetry by reducing transaction-specific risks, therefore generating price premiums for reputable sellers. In addition, the research also examines the role that trust plays in mitigating the risks in transactions that involve very expensive products or experience products.

A major challenge for managers in turbulent environments is to make sound decisions quickly. Dynamic capabilities have been proposed as a means for addressing turbulent environments by helping managers extend, modify, and reconfigure existing operational capabilities into new ones that better match the environment. However, because dynamic capabilities have been viewed as an elusive black box, it is difficult for managers to make sound decisions in turbulent environments if they cannot effectively measure dynamic capabilities. Therefore, we first seek to propose a measurable model of dynamic capabilities by conceptualizing, operationalizing, and measuring dynamic capabilities. Specifically, drawing upon the dynamic capabilities literature, we identify a set of capabilities-sensing the environment, learning, coordinating, and integratingthat help reconfigure existing operational capabilities into new ones that better match the environment. Second, we propose a structural model where dynamic capabilities influence performance by reconfiguring existing operational capabilities in the context of new product development (NPD). Data from 180 NPD units support both the measurable model of dynamic capabilities and also the structural model by which dynamic capabilities influence performance in NPD by reconfiguring operational capabilities, particularly in higher levels of environmental turbulence. The study's implications for managerial decision making in turbulent environments by capturing the elusive black box of dynamic capabilities are discussed.

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