The impact of control, trust and risk on business participation in data marketplaces

The impact of control, trust and risk on business participation in data marketplaces

Kool, Floris (TU Delft Technology, Policy and Management)

de Reuver, G.A. (mentor)
Roosenboom-Kwee, Z. (mentor)

Delft University of Technology

Complex Systems Engineering and Management (CoSEM)

2023-05-15

The adoption of data marketplaces is lacking. Data marketplaces work differently from other information sharing platforms (such as supply chain platforms), because they are more open. This openness allows data to be shared with many more companies, bringing more potential benefits, but also increasing the risk. On data marketplaces there typically is less trust between users, however this lack of risk can be compensated by adding more control mechanisms. For these reasons I want to address the research question:

How does the interplay between control, trust and risk affect a company’s decision to share data in a data marketplace?

The objective of this research is to define and validate the relationships between control, trust, risk and willingness to share data. This will be done through a literature review and a qualitative study using structural equation modelling.

The literature review resulted in a conceptual model, which was subsequently tested using an online survey. The demographic of the survey was managers in the manufacturing industry and they were given two scenarios in which they could share data. In both scenarios their trust in other users, trust in the platform, perceived risk, perceived sensitivity of data and willingness to share data was measured.

Using structural equation modelling we found 5 significant relationships, out of the 6 that were hypothesized. Answering the research question, this study has shown that increasing trust in other users and perceived control can really help decrease the risk of sharing data, which in turn is an important predictor of willingness to share data. However, the sensitivity of data can also have an influence over risk. This insight is new in the field of data marketplaces. We now have a more clear picture of how control and trust can be used to lower the risk and in turn increase the willingness to share data. This study also provided some data that confirms these relationships in the context of the manufacturing industry. This data shows that companies are willing to share their data, if preconditions such as a fair price are met. These results contribute to the overall literature on willingness to share data in a marketplace and on the literature on control mechanisms, trust and risk. The insights from this study can be useful for people designing data marketplaces and regulators that want to encourage the sharing of data.

Data marketplaces
Data sharing
Risk
Control mechanisms

http://resolver.tudelft.nl/uuid:cdd739f6-8679-4ae1-a808-10bee9a51a35

Student theses

master thesis

© 2023 Floris Kool