Research on the dynamic mechanism of social trust production in Internet enterprises

ZHENG Dandan1

(1.School of Sociology, Huazhong University of Science and Technology)

【Abstract】This paper, taking the Internet-based home decoration platform Tubatu as an example, explores the innovation of trust production mechanisms during the development of Internet enterprises. The author argues that the essence of such trust production is to change the relationship structure and to empower the weak in the trust relationship. The root of this process lies in the fact that the ubiquitous technology of the Internet and the fact of de-localization have led to fundamental changes in the number and structure of all parties involved in economic activities. In the expanded overall market, the seller’s autonomy has declined due to intensified competition, and the economic value of the buyer’s demand has been enlarged due to integration. Therefore, the intrinsic motivation of profit-making has greatly stimulated the innovative behavior of enterprises, and promoted social trust and market prosperity.

【Keywords】 social trust ; Internet world ; enterprise innovation ; market expansion ; buyer integration;

【DOI】

【Funds】 Construction Project of First-Class Discipline and First-Class University of Liberal Arts of Huazhong University of Science and Technology

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(Translated by CUI Ying)

    Footnote

    [1]. (1) According to the practice, this article treats respondents anonymously. In order to make the readers more impressed with the case, the Book of Family Names is used to sort. The surnames of four family heads who choose Internet-based home decoration are Zhao, Qian, Sun and Li, and those of the four family heads who do not use Internet-based home decoration are Zhou, Wu, Zheng and Wang. The surnames of bosses of the Internet-based home decoration companies are Feng and Chen, and those of bosses of the traditional home decoration companies are Chu and Wei. [^Back]

    [2]. (2) The official website of Tubatu (http://www.to8to.com). [^Back]

    [3]. (3) Tencent Home (http://news.qq.com/a/20160225/015645.htm). [^Back]

    [4]. (4) Due to space limit, this paper only summarizes the operation model of companies such as Tubatu in combination with the research purpose, and the omissions are inevitable. For example, Tubatu has also introduced a bidding mechanism, which allows three companies to design and quote at the same time. Those mechanisms working together attract property owners. For example, Zhao finally chose the company with the lowest offer. [^Back]

    [5]. (5) The author agrees with Giddens’ view that power is related to ability in either a broad or narrow sense (Giddens, 2003/1993: 212). Tubatu provides professional supervision services and professional knowledge to owners. In fact, the effort is to improve the owner’s ability and then to increase his/her power in the relationship. It is hereinafter referred to as empowerment. [^Back]

    [6]. (6) Zhao said that he had hinted staff from the home decoration company that he might introduce clients to them with the hope that he would receive its excellent service. What is implied here is efforts to produce repeated games. [^Back]

    [7]. (7) Liang, J. (http://ask.seowhy.com/article/6231), (2015-12-8). [^Back]

    [8]. (8) The concept of community usually emphasizes the common cognition and belonging of members while the demand group is not a community in the strict sense. However, the collective power booms as it exists as a group, and the joining of an individual makes it boast some essential features of the community since it can empower other individuals of the group at the same time. Meanwhile, the demand group is sometimes inspired by common awareness, such as right protection. This article uses the concept of demand community in this sense, and hereby explains. [^Back]

    [9]. (9) Manager Feng responsible for Zhao’s home decoration project said that he needed to pay CNY 200 for one piece of home decoration information by Tubatu as the information fee. Tubatu would dispatch three companies to provide designs and quotations for one property owner and the three needed to compete with each other for the project. Manager Feng needs to pay around CNY 7000 as the information fee to Tubatu per month and he is willing to do that. When he ran his own home decoration store, he received a small number of orders from mobile customers. It was extremely hard for him to get orders from those customers. Currently, Manager Zhao, as one of the earliest migrant workers, has managed to transform his company into an Internet-based home decoration company, despite that he had the educational background of senior high school only. He rented one office in the building to sign contracts with clients and for designers to draw pictures. He relies on various platforms and his own webpage to receive orders and the business runs well. [^Back]

    [10]. (10) Liu, Q. from Tubatu, (http://caijing.iqilu.com/cjzx/2015/0722/2491468.shtml). [^Back]

    [11]. (11) Liu, Q. from Tubatu, (http://caijing.iqilu.com/cjzx/2015/0722/2491468.shtml). [^Back]

    [12]. (12) China Industry News, (http://www.cinn.cn/headline/201907/t20190704_214916.html). [^Back]

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This Article

ISSN:1002-5936

CN: 11-1100/C

Vol 34, No. 06, Pages 65-88+243-244

November 2019

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Article Outline

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Abstract

  • 1 Literature review: trust production mechanism in the market transaction
  • 2 Trust solution for technical service commodity transactions: taking Tubatu as an example
  • 3 Market expansion and buyer integration: power and trust in the Internet era
  • 4 Conclusions and discussions
  • Footnote

    References