The Impact of Trust in Platform Providers on User Participation and Economic Benefits in the Sharing Economy in Indonesia

ABSTRACT


INTRODUCTION
The emergence of the sharing economy has revolutionized economic activities globally, including in Indonesia.Enabled by digital platforms, the sharing economy facilitates peer-to-peer transactions, resource sharing, and collaborative consumption, offering innovative solutions to traditional economic challenges.Trust plays a crucial role in shaping user behavior and influencing participation levels in the sharing economy.It ultimately determines the economic benefits derived from sharing economy activities [1].The performance of sharing economy platforms depends on their ability to create trust, facilitate transactions, and ensure the safety and quality of shared assets.However, concerns have been raised regarding regulation, labor rights, and the concentration of market power in the hands of a few large platforms [2].To address these challenges, it is important to have regulations that protect personal data and ensure fair competition in the digital economy [3].
The role of trust is crucial in fostering sustainable growth, enhancing user experiences, and unlocking the full potential of the sharing economy ecosystem in Indonesia.Trust is a significant factor influencing online shopping adoption among Indonesian consumers [4].It is also important for the government to ensure that the digital ecosystem provides sufficient protection to the growth of MSMEs in the digital economy [1].Additionally, policy actors recommend making regional level regulations that technically regulate online transportation according to the area conditions to address licensing issues and other problems related to online transportation [5].Furthermore, trust in online shopping, website security, and trust in the digital ecosystem are significant factors influencing the adoption of e-commerce technology among Indonesian MSMEs [6], [7].Therefore, building trust among users, ensuring security, and implementing effective policies are essential for the sustainable growth and success of the sharing economy in Indonesia.
This research seeks to delve into the intricate relationship between trust in platform providers, user participation levels, and the economic benefits accrued by users in the Indonesian sharing economy.By conducting a quantitative analysis, we aim to unravel the underlying mechanisms through which trust influences user behavior and, subsequently, the broader economic implications.Understanding these dynamics is not only academically intriguing but also holds practical significance for platform providers, policymakers, and stakeholders invested in the future of the sharing economy in Indonesia.

Trust in the Sharing Economy
The sharing economy is built on trust, which makes it easier for strangers to deal with each other and engage in digital settings.Researchers have determined that trust is a multifaceted concept that includes a range of elements, including trust in other users, trust in platform providers, and institutional trust [8], [9].Users' faith in the dependability, security, and capacity of the platform to protect their interests during the transaction process is reflected in their trust in platform providers.
In the sharing economy, research indicates that trust has a major impact on user behavior and platform adoption [10], [11].When users believe that the platform is reliable, they are more likely to participate in sharing activities, which helps to allay worries about the risks and uncertainties involved with peer-to-peer transactions.Furthermore, trust promotes constructive interactions, raises user satisfaction, and helps sharing platforms remain viable over the long run [12].

User Participation in the Sharing Economy
The degree to which people participate in sharing activities via digital platforms is a crucial factor in determining the viability of the sharing economy.Offering products or services, leasing out property, or using common resources are just a few ways that participation might take shape [13], [14].Trust views, platform features, and socioeconomic characteristics are all factors that affect user participation.
Several factors, including as perceived benefits, trust, perceived dangers, and platform design, have been found to be important drivers of user participation in the sharing economy in earlier research [15], [16].Because trust increases other users' trustworthiness and lowers perceived transactional risks, it is essential for motivating users to participate.Positive user experiences and social interactions on sharing platforms can also strengthen user engagement and encourage the expansion of the ecosystem supporting the sharing economy [17].

Economic Benefits of the Sharing Economy
Numerous financial advantages are provided by the sharing economy to both individuals and society as a whole.Sharing economy activities generate value through collaborative consumption and efficient resource allocation, resulting in cost savings, revenue generation, and environmental sustainability.
Consumers can participate in flexible incomegenerating activities, monetize unused assets, and obtain goods and services at reasonable prices [18], [19].
The sharing economy has the ability to boost entrepreneurship, promote economic growth, and solve societal issues, according to academic study on its financial advantages [20], [21].Sharing economy platforms facilitate peer-to-peer interactions and optimize resource allocation by reducing waste and maximizing the use of already-existing resources.Additionally, the sharing economy makes it easier to create new business opportunities, especially in the service industry, enabling people to start small businesses and boosting overall economic resiliency.

Conceptual Framework
The conceptual framework for the literature review provides a theoretical foundation for understanding the relationships between key variables in the context of the sharing economy in Indonesia.The framework outlines theoretical constructs and their interrelationships, guiding the exploration of existing literature and empirical evidence.The following conceptual framework describes the key components:

RESEARCH METHODS
This section outlines the research methodology employed to investigate the effect of trust in platform providers on user participation and economic benefits in the sharing economy within the Indonesian context.The methodology encompasses sample selection, data collection procedures, and data analysis techniques, including Structural Equation Modeling (SEM) using Partial Least Squares (PLS) path analysis.
The sample for this study will consist of individuals who have engaged in sharing economy activities through digital platforms in Indonesia.A stratified random sampling technique will be utilized to ensure the representation of users across different sharing economy sectors, including transportation, accommodation, and goods sharing.Given the diverse nature of sharing economy platforms and users' socio-economic backgrounds, stratification will help capture variations in trust perceptions, user behavior, and economic outcomes.
With a target sample size of participants, efforts will be made to recruit individuals from various demographic groups, geographic regions, and platform usage patterns to ensure the generalizability The Es Economics and Entrepreneurship (ESEE)  of the findings.Participants will be approached through online platforms, social media channels, and sharing economy communities, with the survey instrument distributed electronically for convenience and accessibility.

Data Collection
Data will be collected using an online survey instrument designed to capture relevant variables related to trust in platform providers, user participation levels, and economic benefits derived from sharing economy activities.The survey questionnaire will be developed based on established scales and items from the literature, incorporating validated measures of trust, user behavior, and economic outcomes.
The survey will be pre-tested with a small sample of participants to assess its clarity, comprehensibility, and reliability.Feedback from the pre-test will be used to refine the survey instrument before full-scale deployment.Participants will be assured of the confidentiality and anonymity of their responses, with informed consent obtained prior to participation.Upon completion of the data collection phase, the responses will be compiled and prepared for statistical analysis.

Data Analysis
The

Results a. Demographic Sample
The demographic characteristics of the sample provide valuable insights into the profile of participants involved in the study.The demographic characteristics of the sample offer valuable insights into the participant profile for this study.The summary of demographic data reveals a diverse distribution across various demographics: 55% male and 45% female, with age groups predominantly falling within 26-35 years (45%), followed by 18-25 years (30%).Educationally, 60% hold a bachelor's degree, while 50% are employed full-time.In terms of income, 35% earn between 5-10 million Indonesian Rupiah monthly.Engagement in sharing economy activities is notable, with 35% participating weekly and ride-hailing being the primary platform (40%).The data underscore a diverse and engaged participant base, with significant utilization of sharing economy platforms, particularly in ride-hailing and accommodation rental sectors.

b. Measurement Model
The measurement model results provide crucial insights into the reliability and validity of the latent constructs and their respective indicators, the measurement model results demonstrate that the latent constructs exhibit high internal consistency reliability and satisfactory convergent validity.The indicators reliably measure their respective constructs, with no significant multicollinearity issues observed.

Discussion
The results obtained from hypothesis testing provide valuable insights into the relationships between key variables within the sharing economy context in Indonesia.This discussion section evaluates the hypotheses in light of the statistical findings and their implications for theory and practice.

a. Economic Benefits and Sharing Economy
The hypothesis testing results reveal a significant positive relationship between economic benefits and the sharing economy (T-statistic = 3.639, p-value = 0.002).This finding suggests that economic benefits derived from participation in sharing economy activities positively influence the growth and development of the sharing economy ecosystem.Users who perceive economic gains from their participation are likely to engage more actively in sharing economy transactions, contributing to the expansion and sustainability of the sharing economy [22].Reciprocal sharers, who both take and provide shared products, have stronger ecological, social, and economic value orientations and rate the benefits of sharing higher than non-sharers [23].Additionally, individuals with a dominant independent self-construal, who focus on individual-level goals and expressing their distinctiveness, may be more motivated by normative benefits like sustainability in the sharing economy [24].To promote active engagement and sustainability, sharing platforms should enhance consumer knowledge and trust through information campaigns, review or insurance systems, and meaningful social interactions between participants [24].
By emphasizing the economic benefits, social connectivity, and environmental advantages of sharing, platforms can attract and retain users who are motivated by economic gains and contribute to the expansion and sustainability of the sharing economy [25].

b. Trust in Platform Providers and Economic Benefits
The analysis demonstrates a strong positive relationship between trust in platform providers and economic benefits (T-statistic = 23.436,pvalue = 0.000).This finding supports the hypothesis that trust in platform providers significantly influences economic outcomes within the sharing economy.
Building and maintaining trust in platform providers is crucial for fostering a conducive environment for economic growth and value creation in the sharing economy.Users who trust platform providers are more likely to engage in transactions, leading to increased economic gains for both users and platform operators.Trust in the platform is transferred to trust in the driver, which further influences users' continued intention to use the platform [26].Trust, along with satisfaction, has a significant impact on users' continued intention to use a taxi-hailing app [27].Service quality and trust have a strong and significant impact on the shared use of economic platforms [28].Trust is one of the variables that affect the use of economic platforms, and it has a strong and significant impact [10].

c. Trust in Platform Providers and Sharing Economy
The results indicate a significant positive relationship between trust in platform providers and the sharing economy (T-statistic = 7.707, pvalue = 0.000).This finding supports the hypothesis that trust in platform providers plays a vital role in shaping the sharing economy landscape.
Trustbuilding initiatives by platform providers are crucial for fostering user confidence and promoting the uptake of sharing economy services.
Users who trust platform providers are more inclined to participate in sharing economy activities, leading to the expansion and diversification of the sharing economy ecosystem [26].Trust is established through arrangements of sociomaterial metrics and mechanisms on peerto-peer platforms like Airbnb.Both attitudes of trust and distrust are equally important in trust-building, and when the sociomaterial arrangement fails, trust may deteriorate outside of the platform organization's control [29].Blockchain technologies have the potential to facilitate trust in the sharing economy by providing an immutable audit trail and enabling digital exchange without the need for a trusted central authority.However, these technologies also challenge the institutional roles of marketers and produce a new notion of capitalized sociality devoid of trust [30].Trust, transparency, and accuracy in news reporting are essential values in any democratic society.A decentralised news sharing platform built using blockchain technology aims to mitigate the spread of fake news and promote trust and transparency in news reporting [28].

d. Trust in Platform Providers and User Participation
The analysis reveals a significant positive relationship between trust in platform providers and user participation (T-statistic = 29.041,p-value = 0.000).This finding supports the hypothesis that trust in platform providers influences user engagement and participation in sharing economy transactions.Users who perceive platform providers as trustworthy are more likely to engage in transactions and interactions in the sharing economy ecosystem, leading to increased user participation and fuelling the growth of the sharing economy [30].Trust-building efforts by platform providers play an important role in driving user engagement [28].Trust is built through various mechanisms and metrics, such as mutual evaluations between consumers and platform providers, who are considered to be trustworthy sources of information [10].In addition, the volume of competitive actions, economic incentives, and high-visibility events offered by sharing economy platforms positively influence the development of an early-stage user base [31].Sociopolitical legitimisation efforts by platforms address stakeholders' concerns and moderate the impact of competitive actions on user base  [32].Motivations, rewards, and user knowledge have been found to enhance user participation in bike sharing services [33].Additionally, the use of information noise and user interactive networks can influence the decision of user participation [15].Designing interventions that actively engage people with the natural world can foster long-term mutual benefits and promote active public nature engagement [34].Understanding the mechanisms and factors that drive active participation can help managers implement effective policies to achieve the sustainability of co-creation communities [35].
In conclusion, the findings of this study underscore the importance of economic benefits, trust in platform providers, and user participation in shaping the sharing economy landscape in Indonesia.These results offer valuable insights for platform providers, policymakers, and practitioners seeking to foster trust, enhance user engagement, and maximize economic benefits within the sharing economy ecosystem.Additionally, the findings contribute to theoretical understanding by empirically validating the relationships between key variables within the sharing economy context.

Implications for Theory and Practice
The findings of this study contribute to theoretical understanding by empirically validating the relationships between trust, user participation, and economic benefits in the sharing economy context.By elucidating these dynamics, the study enriches existing theoretical frameworks and provides a foundation for further research in this area.From a practical standpoint, the findings offer actionable insights for platform providers, policymakers, and practitioners seeking to foster trust, enhance user participation, and maximize economic benefits within the sharing economy ecosystem.Strategies aimed at building trust, promoting user engagement, and optimizing platform functionalities can drive sustainable growth and value creation in the Indonesian sharing economy and beyond.

Limitations and Future Research Directions
It is essential to acknowledge certain limitations of the study, including the reliance on crosssectional data and self-reported measures.Future research could employ longitudinal designs and objective indicators of user behavior to provide more robust insights into the dynamics of trust, participation, and economic outcomes over time.Additionally, exploring contextual factors and cultural nuances that influence trust dynamics and user behavior in diverse sharing economy contexts could further enrich our understanding of these phenomena.

CONCLUSION
This study provides empirical evidence supporting the importance of trust in platform providers in fostering user participation and driving economic benefits in the sharing economy in Indonesia.The results underscore the significant positive impact of trust in platform providers on both user participation and economic benefits, highlighting the critical role of trust-building mechanisms in sharing economy platforms.Furthermore, the mediation analysis indicates that user participation partially mediates the relationship between trust in platform providers and economic benefits, emphasizing the importance of active user engagement in realizing economic gains.These findings have practical implications for platform providers, policymakers, and researchers, suggesting the need for strategies that enhance trust, foster user participation, and promote economic growth within the sharing economy ecosystem.Additionally, the study contributes to the theoretical understanding of trust dynamics and user behavior in the context of the sharing economy, paving the way for future research endeavors aimed at further exploring these phenomena in diverse cultural and contextual settings.

Figure 2 .
Figure 2. Model Internal Assessment e. Model Fit The assessment of model fit based on several indices indicates that the structural model offers a satisfactory representation of the observed data.The obtained Goodness-of-Fit Index (GFI) value of 0.92 suggests that approximately 92% of the variance in the observed data is explained by the model.Additionally, the Root Mean Square Error of Approximation (RMSEA) value of 0.07 indicates a reasonable fit between the observed and predicted values, considering the complexity of the

Table 1 .
Measurement Model Test