Trust economy: Aspects of reputation and trust building for SMEs in e-business

The lack of direct communication is a problem in E-Business. It often leads to financial disadvantages for small and medium sized companies. This paper investigates the interrelationships between reputation, trust, risk, and costs. It presents a framework combining these four parameters. In addition, it develops a trust building process, a trust cycle, and presents some instruments to engender trust. Companies may consider these solutions to be helpful in order to overcome the lack of direct communication, to build trust between business partners, to understand the interrelationships between the four mentioned parameters, and to avoid financial disadvantages