[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/inm/ororsc/v28y2017i1p74-92.html
   My bibliography  Save this article

Mutual and Exclusive: Dyadic Sources of Trust in Interorganizational Exchange

Author

Listed:
  • Bill McEvily

    (Rotman School of Management, University of Toronto, Toronto, Ontario M5S 3E6, Canada)

  • Akbar Zaheer

    (Carlson School of Management, University of Minnesota, Minneapolis, Minnesota 55455)

  • Darcy K. Fudge Kamal

    (Argyros School of Business and Economics, Chapman University, Orange, California 92866)

Abstract
Trust in interfirm exchange has traditionally been treated as mutually held and jointly determined by the two parties in a relationship. Yet, the expectations of exchange partners can, and routinely do, differ with respect to the goals, preferences, and vulnerabilities in their shared relationship. To account for such differences in expectations, we propose a broadened conceptualization of the sources of interorganizational trust as dyadic. Viewing the sources of trust as dyadic expands the conventional focus on mutual elements to further emphasize exclusive features of an exchange relationship. To substantiate our theory, we examine a key source of interorganizational trust, exchange hazards, and assess the extent to which its effects vary as a function of (1) the locus of exchange hazards (own versus other) in the dyad, (2) the degree of power imbalance in the dyad, and (3) each party’s power position in the dyad. To assess the validity of our claims, we devise a matched dyad research design and collect identical information from both buyers and suppliers in a given exchange relationship. Based on our results, we make three unique observations consistent with the notion of dyadic sources of trust. First, the same exchange hazards have contrasting effects on trust (enhancing versus diminishing) across the dyad. Second, the degree of power imbalance has opposing effects across the dyad. Third, the relative significance of partners’ exchange hazards varies based on their respective power positions.

Suggested Citation

  • Bill McEvily & Akbar Zaheer & Darcy K. Fudge Kamal, 2017. "Mutual and Exclusive: Dyadic Sources of Trust in Interorganizational Exchange," Organization Science, INFORMS, vol. 28(1), pages 74-92, February.
    • Handle: RePEc:inm:ororsc:v:28:y:2017:i:1:p:74-92
    DOI: 10.1287/orsc.2016.1102
    as

    Download full text from publisher

    File URL: https://doi.org/10.1287/orsc.2016.1102
    Download Restriction: no
    File URL: https://libkey.io/10.1287/orsc.2016.1102?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Malhotra, Deepak & Lumineau, Fabrice, 2011. "Trust and collaboration in the aftermath of conflict: the effects of contract structure," MPRA Paper 38358, University Library of Munich, Germany.
    2. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87, World Scientific Publishing Co. Pte. Ltd..
    3. Akbar Zaheer & Darcy Fudge Kamal, 2011. "Creating trust in piranha-infested waters: The confluence of buyer, supplier and host country contexts," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(1), pages 48-55, January.
    4. Akbar Zaheer & N. Venkatraman, 1994. "Determinants of Electronic Integration in the Insurance Industry: An Empirical Test," Management Science, INFORMS, vol. 40(5), pages 549-566, May.
    5. Nooteboom, B. & Berger, H. & Noorderhaven, N.G., 1997. "Effects of trust and governance on relational risk," Other publications TiSEM 8e83932e-064c-40e8-afe7-4, Tilburg University, School of Economics and Management.
    6. Candace Young-Ybarra & Margarethe Wiersema, 1999. "Strategic Flexibility in Information Technology Alliances: The Influence of Transaction Cost Economics and Social Exchange Theory," Organization Science, INFORMS, vol. 10(4), pages 439-459, August.
    7. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    8. Akbar Zaheer & Bill McEvily & Vincenzo Perrone, 1998. "Does Trust Matter? Exploring the Effects of Interorganizational and Interpersonal Trust on Performance," Organization Science, INFORMS, vol. 9(2), pages 141-159, April.
    9. Anoop Madhok, 1995. "Revisiting Multinational firm's Tolerance for Joint Ventures: A Trust-Based approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(1), pages 117-137, March.
    10. ANITA M. McGAHAN & MICHAEL E. PORTER, 1997. "How Much Does Industry Matter, Really?," Strategic Management Journal, Wiley Blackwell, vol. 18(S1), pages 15-30, July.
    11. Akbar Zaheer & N. Venkatraman, 1995. "Relational governance as an interorganizational strategy: An empirical test of the role of trust in economic exchange," Strategic Management Journal, Wiley Blackwell, vol. 16(5), pages 373-392.
    12. Ranjay Gulati & Jack A. Nickerson, 2008. "Interorganizational Trust, Governance Choice, and Exchange Performance," Organization Science, INFORMS, vol. 19(5), pages 688-708, October.
    13. Stephen J. Carson & Anoop Madhok & Rohit Varman & George John, 2003. "Information Processing Moderators of the Effectiveness of Trust-Based Governance in Interfirm R&D Collaboration," Organization Science, INFORMS, vol. 14(1), pages 45-56, February.
    14. Oliver Schilke & Karen S. Cook, 2015. "Sources of alliance partner trustworthiness: Integrating calculative and relational perspectives," Strategic Management Journal, Wiley Blackwell, vol. 36(2), pages 276-297, February.
    15. Lumineau, Fabrice & Malhotra, Deepak, 2011. "Shadow of the contract: how contract structure shapes inter-firm dispute resolution," MPRA Paper 38359, University Library of Munich, Germany.
    16. Gokhan Ertug & Ilya R P Cuypers & Niels G Noorderhaven & Ben M Bensaou, 2013. "Trust between international joint venture partners: Effects of home countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(3), pages 263-282, April.
    17. Sandy D. Jap & Erin Anderson, 2003. "Safeguarding Interorganizational Performance and Continuity Under Ex Post Opportunism," Management Science, INFORMS, vol. 49(12), pages 1684-1701, December.
    18. Marko Pitesa & Stefan Thau, 2013. "Compliant sinners, obstinate saints: How power and self-focus determine the effectiveness of social influences in ethical decision making," Post-Print hal-00814614, HAL.
    19. Demsetz, Harold, 1973. "Industry Structure, Market Rivalry, and Public Policy," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 1-9, April.
    20. Marko Pitesa & Stefan Thau, 2013. "Compliant sinners, obstinate saints: How power and self-focus determine the effectiveness of social influences in ethical decision making," Grenoble Ecole de Management (Post-Print) hal-00814614, HAL.
    21. Erin Anderson & Barton Weitz, 1989. "Determinants of Continuity in Conventional Industrial Channel Dyads," Marketing Science, INFORMS, vol. 8(4), pages 310-323.
    22. Jeffrey H. Dyer & Wujin Chu, 2003. "The Role of Trustworthiness in Reducing Transaction Costs and Improving Performance: Empirical Evidence from the United States, Japan, and Korea," Organization Science, INFORMS, vol. 14(1), pages 57-68, February.
    23. Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law and Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
    24. Erin Anderson & David C. Schmittlein, 1984. "Integration of the Sales Force: An Empirical Examination," RAND Journal of Economics, The RAND Corporation, vol. 15(3), pages 385-395, Autumn.
    25. Laura Poppo & Kevin Zheng Zhou & Sungmin Ryu, 2008. "Alternative Origins to Interorganizational Trust: An Interdependence Perspective on the Shadow of the Past and the Shadow of the Future," Organization Science, INFORMS, vol. 19(1), pages 39-55, February.
    26. Anderson, Erin, 1988. "Transaction costs as determinants of opportunism in integrated and independent sales forces," Journal of Economic Behavior & Organization, Elsevier, vol. 9(3), pages 247-264, April.
    27. repec:ucp:bkecon:9780226316529 is not listed on IDEAS
    28. Vincenzo Perrone & Akbar Zaheer & Bill McEvily, 2003. "Free to Be Trusted? Organizational Constraints on Trust in Boundary Spanners," Organization Science, INFORMS, vol. 14(4), pages 422-439, August.
    29. John, George & Weitz, Barton A, 1988. "Forward Integration into Distribution: An Empirical Test of Transaction Cost Analysis," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 4(2), pages 337-355, Fall.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aaquib Islam & Weizi Li & Kevin Johnson & Priam Lauchande, 2020. "How far has the integrated care come? Applying an asymmetric lens to inter-organisation trust amongst health and social care organisations," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 529-554, June.
    2. Musarra, Giuseppe & Kadile, Vita & Zaefarian, Ghasem & Oghazi, Pejvak & Najafi-Tavani, Zhaleh, 2022. "Emotions, culture intelligence, and mutual trust in technology business relationships," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    3. Umit Ozmel & Deniz Yavuz & Jeffrey J. Reuer & Todd Zenger, 2017. "Network Prominence, Bargaining Power, and the Allocation of Value Capturing Rights in High-Tech Alliance Contracts," Organization Science, INFORMS, vol. 28(5), pages 947-964, October.
    4. Se-Yeon Ahn & So-Hyung Kim, 2017. "What Makes Firms Innovative? The Role of Social Capital in Corporate Innovation," Sustainability, MDPI, vol. 9(9), pages 1-13, September.
    5. Aftab Alam, Muhammad & Rooney, David & Taylor, Murray, 2022. "Measuring Inter-Firm Openness in Innovation Ecosystems," Journal of Business Research, Elsevier, vol. 138(C), pages 436-456.
    6. Harper, Alison & Mustafee, Navonil & Yearworth, Mike, 2021. "Facets of trust in simulation studies," European Journal of Operational Research, Elsevier, vol. 289(1), pages 197-213.
    7. Lumineau, Fabrice & Jin, Jason Lu & Sheng, Shibin & Zhou, Kevin Zheng, 2022. "Asset specificity asymmetry and supplier opportunism in buyer–supplier exchanges," Journal of Business Research, Elsevier, vol. 149(C), pages 85-100.
    8. Hao, Bin & Feng, Yanan, 2018. "Leveraging learning forces in asymmetric alliances: Small firms’ perceived power imbalance in driving exploration and exploitation," Technovation, Elsevier, vol. 78(C), pages 27-39.
    9. van der Valk, Wendy & Lumineau, Fabrice & Wang, Wenqian, 2019. "Research on contracting in supply chain management and related disciplines: A synthesis of scholarly recommendations and a discussion of future opportunities," Other publications TiSEM 55901a88-7fc5-4808-a47a-e, Tilburg University, School of Economics and Management.
    10. Waymond Rodgers & Andrés Guiral & José A. Gonzalo, 2019. "Trusting/Distrusting Auditors’ Opinions," Sustainability, MDPI, vol. 11(6), pages 1-16, March.
    11. Aaquib Islam & Weizi Li & Kevin Johnson & Priam Lauchande, 0. "How far has the integrated care come? Applying an asymmetric lens to inter-organisation trust amongst health and social care organisations," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-26.
    12. Xie, Xuemei & Wu, Yonghui & Devece, Carlos, 2022. "Is collaborative innovation a double-edged sword for firms? The contingent role of ambidextrous learning and TMT shared vision," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    13. McCarter, Matthew W. & Wade-Benzoni, Kimberly A. & Kamal, Darcy K. Fudge & Bang, H. Min & Hyde, Steven J. & Maredia, Reshma, 2020. "Models of intragroup conflict in management: A literature review," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 925-946.
    14. Carole Couper & A. Rebecca Reuber & Shameen Prashantham, 2020. "Lost that lovin’ feeling: The erosion of trust between small, high-distance partners," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(3), pages 326-352, April.
    15. Darcy K. Fudge Kamal & Florence Honoré & Cristina Nistor, 2021. "When the weak are mighty: A two‐sided matching approach to alliance performance," Strategic Management Journal, Wiley Blackwell, vol. 42(5), pages 917-940, May.
    16. Nurhayati, Kartika & Tavasszy, Lóránt & Rezaei, Jafar, 2023. "Joint B2B supply chain decision-making: Drivers, facilitators and barriers," International Journal of Production Economics, Elsevier, vol. 256(C).
    17. Liu, Yen-Hung Steven & Deligonul, Seyda & Cavusgil, Erin & Chiou, Jyh-Shen, 2018. "Always trust in old friends? Effects of reciprocity in bilateral asset specificity on trust in international B2B partnerships," Journal of Business Research, Elsevier, vol. 90(C), pages 171-185.
    18. Oliveira, Luis & Johanson, Martin, 2021. "Trust and firm internationalization: Dark-side effects on internationalization speed and how to alleviate them," Journal of Business Research, Elsevier, vol. 133(C), pages 1-12.
    19. Jing Liang & Shilei Yang, 2024. "The profitability implications of supplier concentration during economic recession and restoration: the moderating role of supply localization," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.
    20. Gu, Jing & Shi, Xinyu & Wang, Peini & Xu, Xun, 2022. "Examining the impact of upstream and downstream relationship stability and concentration on firms’ financial performance," Journal of Business Research, Elsevier, vol. 141(C), pages 229-242.
    21. Wang, Mengyang & Zheng Zhou, Kevin & Bai, Xuan & Li, Jiaxuan, 2024. "Trust asymmetry and changes in supplier opportunism: An institutional contingency view," Journal of Business Research, Elsevier, vol. 174(C).
    22. Liu, Steven Y.H. & Napier, Elizabeth & Runfola, Andrea & Cavusgil, S. Tamer, 2020. "MNE-NGO partnerships for sustainability and social responsibility in the global fast-fashion industry: A loose-coupling perspective," International Business Review, Elsevier, vol. 29(5).
    23. Zolfaghari, Badri & Madjdi, Farsan, 2022. "Building Trusting Multicultural Organizations: Rethinking the Influence of Culture on Interpersonal Trust Development in the Workplace," Journal of International Management, Elsevier, vol. 28(4).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Oliver Schilke & Karen S. Cook, 2015. "Sources of alliance partner trustworthiness: Integrating calculative and relational perspectives," Strategic Management Journal, Wiley Blackwell, vol. 36(2), pages 276-297, February.
    2. Pei-Li Yu, 2019. "Interfirm coopetition, trust, and opportunism: a mediated moderation model," Review of Managerial Science, Springer, vol. 13(5), pages 1069-1092, November.
    3. Bidault, Francis & de la Torre, José R. & Zanakis, Stelios H. & Ring, Peter Smith, 2018. "Willingness to rely on trust in global business collaborations: Context vs. demography," Journal of World Business, Elsevier, vol. 53(3), pages 373-391.
    4. Liwen Wang, 2023. "The interplay of contracts and trust: untangling between- and within-dyad effects," Post-Print hal-03944358, HAL.
    5. Lumineau, Fabrice & Henderson, James, 2012. "The influence of relational experience and contractual governance on the negotiation strategy in buyer-supplier disputes," MPRA Paper 38510, University Library of Munich, Germany.
    6. Griessmair, Michele & Hussain, Dildar & Windsperger, Josef, 2014. "Trust and the tendency towards multi-unit franchising: A relational governance view," Journal of Business Research, Elsevier, vol. 67(11), pages 2337-2345.
    7. Ebers, Mark & Semrau, Thorsten, 2015. "What drives the allocation of specific investments between buyer and supplier?," Journal of Business Research, Elsevier, vol. 68(2), pages 415-424.
    8. Fang, F., 2019. "When performance shortfall arises, contract or trust? A multi-method study of the impact of contractual and relational governances on performance in public – private partnerships," Other publications TiSEM 473840ee-6945-4a93-9326-5, Tilburg University, School of Economics and Management.
    9. Stephanie Eckerd & Sean Handley & Fabrice Lumineau, 2022. "Trust violations in buyer–supplier relationships: Spillovers and the contingent role of governance structures," Journal of Supply Chain Management, Institute for Supply Management, vol. 58(3), pages 47-70, July.
    10. Lumineau, Fabrice & Jin, Jason Lu & Sheng, Shibin & Zhou, Kevin Zheng, 2022. "Asset specificity asymmetry and supplier opportunism in buyer–supplier exchanges," Journal of Business Research, Elsevier, vol. 149(C), pages 85-100.
    11. Holtgrave, Maximilian & Nienaber, Ann-Marie & Ferreira, Carlos, 2017. "Untangling the trust–control nexus in international buyer–supplier exchange relationships: An investigation of the changing world regarding relationship length," European Management Journal, Elsevier, vol. 35(4), pages 523-537.
    12. Han, Shaojie & Su, Jingqin & Lyu, Yibo & Liu, Qing, 2022. "How do business incubators govern incubation relationships with different new ventures?," Technovation, Elsevier, vol. 116(C).
    13. Mahoney, Joseph T. & McNally, Regina C., 2004. "Explaining and Predicting the Choice of Organizational Form: Integrating Performance Ambiguity and Asset Specificity Effects," Working Papers 04-0109, University of Illinois at Urbana-Champaign, College of Business.
    14. Ranjay Gulati & Maxim Sytch, 2008. "Does familiarity breed trust? Revisiting the antecedents of trust," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(2-3), pages 165-190.
    15. Bart S. Vanneste & Douglas H. Frank, 2014. "Forgiveness in Vertical Relationships: Incentive and Termination Effects," Organization Science, INFORMS, vol. 25(6), pages 1807-1822, December.
    16. Carole Couper & A. Rebecca Reuber & Shameen Prashantham, 2020. "Lost that lovin’ feeling: The erosion of trust between small, high-distance partners," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(3), pages 326-352, April.
    17. Delbufalo, Emanuela, 2015. "Subjective trust and perceived risk influences on exchange performance in supplier–manufacturer relationships," Scandinavian Journal of Management, Elsevier, vol. 31(1), pages 84-101.
    18. Roland Helm & Martin Kloyer & Christin Aust, 2018. "R&D Collaboration Between Firms: Hard And Soft Antecedents Of Supplier Knowledge Sharing," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(01), pages 1-42, December.
    19. Claudio Panico, 2017. "Strategic interaction in alliances," Strategic Management Journal, Wiley Blackwell, vol. 38(8), pages 1646-1667, August.
    20. Martyna Janowicz‐Panjaitan & Rekha Krishnan, 2009. "Measures for Dealing with Competence and Integrity Violations of Interorganizational Trust at the Corporate and Operating Levels of Organizational Hierarchy," Journal of Management Studies, Wiley Blackwell, vol. 46(2), pages 245-268, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ororsc:v:28:y:2017:i:1:p:74-92. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.