ABSTRACT
Abstract: Trust is an important consideration prior to the adoption of outsourcing options and subsequently during the management of the outsourcing relationship. Understanding the antecedents to the adoption of information technology is important both to technology firms that provide services and to policy analysts who study the effects of technology adoption and information technology success. The first part of this chapter examines the role trust plays in the outsourcing relationship. Trust is discussed as both an antecedent to adoption and a critical part of the relationship post adoption. The second part of the chapter examines a conceptual model of trust and privacy that is tested using partial least squares. The empirical study uses a transactional cost approach to investigate the role of trust and privacy, both as direct effects and as moderators in the adoption of application service providers (ASPs) as a new form of information technology outsourcing. The study focuses on the health care industry. The model results indicate that trust plays a minimal role in the adoption of ASPs. Limitations of the research are discussed; implications are reviewed;and future research areas are identified.
