IDEAS home Printed from https://ideas.repec.org/a/eee/iburev/v26y2017i3p491-501.html
   My bibliography  Save this article

An integrated perspective of social exchange theory and transaction cost approach on the antecedents of trust in international joint ventures

Author

Listed:
  • Khalid, Saba
  • Ali, Tahir

Abstract

This study investigates the antecedents of trust in International Joint Ventures (IJVs). Building on social exchange theory (SET) and transaction cost theory (TCT), we develop an integrated framework in which trust development requires two sets of antecedents: (1) social antecedents (prior alliance experience with partner, partner’s cultural sensitivity and reputation, inter-partner communication, expected longevity of the IJVs), and (2) structural antecedents (interdependence, ownership share, resource complementary). The developed framework is tested using web-survey data collected from 89 IJVs established by Nordic firms in Asia, Europe and America. Empirical data analysis based on structural equation modelling suggests that a partner’s cultural sensitivity and reputation, inter-partner communication, and expected longevity are the social antecedents from SET that enhance trust. From TCA, the structural antecedent of resource complementary develops trust, while balanced interdependence and balanced ownership are unrelated to trust. These findings have important implications for managers planning to form and manage IJVs.

Suggested Citation

  • Khalid, Saba & Ali, Tahir, 2017. "An integrated perspective of social exchange theory and transaction cost approach on the antecedents of trust in international joint ventures," International Business Review, Elsevier, vol. 26(3), pages 491-501.
    • Handle: RePEc:eee:iburev:v:26:y:2017:i:3:p:491-501
    DOI: 10.1016/j.ibusrev.2016.10.008
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969593116302438
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ibusrev.2016.10.008?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Boersma, Margreet F. & Buckley, Peter J. & Ghauri, Pervez N., 2003. "Trust in international joint venture relationships," Journal of Business Research, Elsevier, vol. 56(12), pages 1031-1042, December.
    2. Maurizio Zollo & Jeffrey J. Reuer & Harbir Singh, 2002. "Interorganizational Routines and Performance in Strategic Alliances," Organization Science, INFORMS, vol. 13(6), pages 701-713, December.
    3. Isidor, Rodrigo & Schwens, Christian & Hornung, Frank & Kabst, Ruediger, 2015. "The impact of structural and attitudinal antecedents on the instability of international joint ventures: The mediating role of asymmetrical changes in commitment," International Business Review, Elsevier, vol. 24(2), pages 298-310.
    4. Lui, Steven S. & Wong, Yin-yee & Liu, Weiping, 2009. "Asset specificity roles in interfirm cooperation: Reducing opportunistic behavior or increasing cooperative behavior?," Journal of Business Research, Elsevier, vol. 62(11), pages 1214-1219, November.
    5. Preet S Aulakh & Masaaki Kotabe & Arvind Sahay, 1996. "Trust and Performance in Cross-Border Marketing Partnerships: A Behavioral Approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(4), pages 1005-1032, December.
    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. Jean L Johnson & John B Cullen & Tomoaki Sakano & Hideyuki Takenouchi, 1996. "Setting the Stage for Trust and Strategic Integration in Japanese-U.S. Cooperative Alliances," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(4), pages 981-1004, December.
    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. Inkpen, Andrew C. & Currall, Steven C., 1998. "The nature, antecedents, and consequences of joint venture trust," Journal of International Management, Elsevier, vol. 4(1), pages 1-20, July.
    11. Jeff Dyer & Wujin Chu, 2011. "The determinants of trust in supplier–automaker relations in the US, Japan, and Korea: A retrospective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(1), pages 28-34, January.
    12. Costa e Silva, Susana & Bradley, Frank & Sousa, Carlos M.P., 2012. "Empirical test of the trust–performance link in an international alliances context," International Business Review, Elsevier, vol. 21(2), pages 293-306.
    13. Yadong Luo, 2007. "An integrated anti-opportunism system in international exchange," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(6), pages 855-877, November.
    14. Jeffrey H Dyer & Wujin Chu, 2011. "The determinants of trust in supplier–automaker relationships in the US, Japan, and Korea," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(1), pages 10-27, January.
    15. Lin, Xiaohua & Wang, Cheng Lu, 2008. "Enforcement and performance: The role of ownership, legalism and trust in international joint ventures," Journal of World Business, Elsevier, vol. 43(3), pages 340-351, July.
    16. 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.
    17. Bo Bernhard Nielsen & Sabina Nielsen, 2009. "Learning and Innovation in International Strategic Alliances: An Empirical Test of the Role of Trust and Tacitness," Journal of Management Studies, Wiley Blackwell, vol. 46(6), pages 1031-1056, September.
    18. Mukherjee, Debmalya & Gaur, Ajai S. & Gaur, Sanjaya S. & Schmid, Florian, 2013. "External and internal influences on R&D alliance formation: Evidence from German SMEs," Journal of Business Research, Elsevier, vol. 66(11), pages 2178-2185.
    19. Parkhe, Arvind, 1998. "Understanding trust in international alliances," Journal of World Business, Elsevier, vol. 33(3), pages 219-240, October.
    20. Parkhe, Arvind, 1998. "Building trust in international alliances," Journal of World Business, Elsevier, vol. 33(4), pages 417-437, January.
    21. Preet S Aulakh & Masaaki Kotabe & Arvind Sahay, 1996. "Trust and Performance in Cross-Border Marketing Partnerships: A Behavioral Approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(5), pages 1005-1032, December.
    22. Brian L. Connelly & Toyah Miller & Cynthia E. Devers, 2012. "Under a cloud of suspicion: trust, distrust, and their interactive effect in interorganizational contracting," Strategic Management Journal, Wiley Blackwell, vol. 33(7), pages 820-833, July.
    23. Sánchez de Pablo González del Campo, Jesús David & Peña García Pardo, Isidro & Hernández Perlines, Felipe, 2014. "Influence factors of trust building in cooperation agreements," Journal of Business Research, Elsevier, vol. 67(5), pages 710-714.
    24. Williamson, Oliver E, 1993. "Calculativeness, Trust, and Economic Organization," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 453-486, April.
    25. Hsieh, Linda H.Y. & Rodrigues, Suzana B. & Child, John, 2010. "Risk perception and post-formation governance in international joint ventures in Taiwan: The perspective of the foreign partner," Journal of International Management, Elsevier, vol. 16(3), pages 288-303, September.
    26. Ramaswamy, Kannan & Gomes, Lenn & Veliyath, Rajaram, 1998. "The performance correlates of ownership control: a study of U.S. and European MNE joint ventures in India," International Business Review, Elsevier, vol. 7(4), pages 423-441, August.
    27. Nielsen, Bo Bernhard, 2007. "Determining international strategic alliance performance: A multidimensional approach," International Business Review, Elsevier, vol. 16(3), pages 337-361, June.
    28. Jean‐Francois Hennart, 1988. "A transaction costs theory of equity joint ventures," Strategic Management Journal, Wiley Blackwell, vol. 9(4), pages 361-374, July.
    29. Jean L Johnson & John B Cullen & Tomoaki Sakano & Hideyuki Takenouchi, 1996. "Setting the Stage for Trust and Strategic Integration in Japanese-U.S. Cooperative Alliances," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(5), pages 981-1004, December.
    30. John Hulland, 1999. "Use of partial least squares (PLS) in strategic management research: a review of four recent studies," Strategic Management Journal, Wiley Blackwell, vol. 20(2), pages 195-204, February.
    31. Kwon, Yung-Chul, 2008. "Antecedents and consequences of international joint venture partnerships: A social exchange perspective," International Business Review, Elsevier, vol. 17(5), pages 559-573, October.
    32. Matthew J. Robson & Constantine S. Katsikeas & Daniel C. Bello, 2008. "Drivers and Performance Outcomes of Trust in International Strategic Alliances: The Role of Organizational Complexity," Organization Science, INFORMS, vol. 19(4), pages 647-665, August.
    33. 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.
    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. Kyung-Joon Kwon & Li-Wei Mai & Norman Peng, 2020. "Determinants of consumers’ intentions to share knowledge and intentions to purchase on s-commerce sites: incorporating attitudes toward persuasion attempts into a social exchange model," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(1), pages 157-183, March.
    2. Radtke, Robin R. & Speklé, Roland F. & Widener, Sally K., 2023. "Flourish or flounder: Do trust-centric management controls encourage knowledge sharing and team performance?," Accounting, Organizations and Society, Elsevier, vol. 107(C).
    3. Jia‐Wei Tang & Chih‐Jou Chen & Pei‐Hsuan Tsai, 2022. "Development of hybrid fuzzy multi‐criteria decision approach to evaluate key factors for marketing strategic alliance formation based on multiple theories," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(1), pages 241-261, January.
    4. 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).
    5. Xian Liu & Wenyu Wang & Yiyi Su, 2022. "Leveraging Complementary Resources through Relational Capital to Improve Alliance Performance under an Uncertain Environment: A Moderated Mediation Analysis," Sustainability, MDPI, vol. 15(1), pages 1-16, December.
    6. Tengjian Zou & Gokhan Ertug & Ilya R. P. Cuypers & Donald L. Ferrin, 2023. "Trust across borders: a review of the research on interorganizational trust in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(8), pages 1379-1401, October.
    7. Arindam Das, 2023. "Developing dynamic digital capabilities in micro-multinationals through platform ecosystems: Assessing the role of trust in algorithmic smart contracts," Journal of International Entrepreneurship, Springer, vol. 21(2), pages 157-179, June.
    8. Teck Ming Tan & Saila Saraniemi, 2023. "Trust in blockchain-enabled exchanges: Future directions in blockchain marketing," Journal of the Academy of Marketing Science, Springer, vol. 51(4), pages 914-939, July.
    9. Mengyuan Cheng & Guoliang Liu & Yongshun Xu & Ming Chi, 2021. "Enhancing Trust Between PPP Partners: The Role of Contractual Functions and Information Transparency," SAGE Open, , vol. 11(3), pages 21582440211, August.
    10. Patrucco, Andrea S. & Moretto, Antonella & Luzzini, Davide & Glas, Andreas H., 2020. "Obtaining supplier commitment: antecedents and performance outcomes," International Journal of Production Economics, Elsevier, vol. 220(C).
    11. Keszey, Tamara, 2018. "Trust, perception, and managerial use of market information," International Business Review, Elsevier, vol. 27(6), pages 1161-1171.
    12. Can Saglam, Yesim & Yildiz Çankaya, Sibel & Golgeci, Ismail & Sezen, Bulent & Zaim, Selim, 2022. "The role of communication quality, relational commitment, and reciprocity in building supply chain resilience: A social exchange theory perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 167(C).
    13. Nikolaos SKLAVOUNOS & Konstantinos ROTSIOS & Yannis HAJIDIMITRIOU, 2020. "Managers’ perceptions on trust and knowledge transfer: evidence from Greek ISAs in South East Europe Abstract: Nowadays, cooperation through the formation of International Strategic Alliances (ISAs) h," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 11, pages 164-185, June.
    14. Kwok, Diana W.P. & Meschi, Pierre-Xavier & Bertrand, Olivier, 2020. "In CEOs we trust: When religion matters in cross-border acquisitions. The case of a multifaith country," International Business Review, Elsevier, vol. 29(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. Ali, Tahir & Larimo, Jorma, 2016. "Managing opportunism in international joint ventures: The role of structural and social mechanisms," Scandinavian Journal of Management, Elsevier, vol. 32(2), pages 86-96.
    2. Costa e Silva, Susana & Bradley, Frank & Sousa, Carlos M.P., 2012. "Empirical test of the trust–performance link in an international alliances context," International Business Review, Elsevier, vol. 21(2), pages 293-306.
    3. Ali, Tahir & Khalid, Saba & Shahzad, Khuram & Larimo, Jorma, 2021. "Managing international joint ventures to improve performance: The role of structural and social mechanisms," International Business Review, Elsevier, vol. 30(3).
    4. Linda H. Y. Hsieh & Suzana B. Rodrigues, 2014. "Revisiting the Trustworthiness–Performance–Governance Nexus in International Joint Ventures," Management International Review, Springer, vol. 54(5), pages 675-705, October.
    5. Nikolaos SKLAVOUNOS & Konstantinos ROTSIOS & Yannis HAJIDIMITRIOU, 2020. "Managers’ perceptions on trust and knowledge transfer: evidence from Greek ISAs in South East Europe Abstract: Nowadays, cooperation through the formation of International Strategic Alliances (ISAs) h," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 11, pages 164-185, June.
    6. Tengjian Zou & Gokhan Ertug & Ilya R. P. Cuypers & Donald L. Ferrin, 2023. "Trust across borders: a review of the research on interorganizational trust in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(8), pages 1379-1401, October.
    7. Liu, Chia-Ling (Eunice) & Ghauri, Pervez N. & Sinkovics, Rudolf R., 2010. "Understanding the impact of relational capital and organizational learning on alliance outcomes," Journal of World Business, Elsevier, vol. 45(3), pages 237-249, July.
    8. Marius G. Gehrisch & Stefan Süß, 2023. "Organizational behavior in international strategic alliances and the relation to performance – a literature review and avenues for future research," Management Review Quarterly, Springer, vol. 73(3), pages 1045-1107, September.
    9. 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).
    10. Müller, Dirk, 2010. "Alliance Coordination, Dysfunctions, and the Protection of Idiosyncratic Knowledge in Strategic Learning Alliances," EconStor Preprints 41039, ZBW - Leibniz Information Centre for Economics.
    11. Janowicz, M.K. & Noorderhaven, N.G., 2002. "The Role of Trust in Interorganizational Learning in Joint Ventures," Discussion Paper 2002-119, Tilburg University, Center for Economic Research.
    12. Isidor, Rodrigo & Schwens, Christian & Hornung, Frank & Kabst, Ruediger, 2015. "The impact of structural and attitudinal antecedents on the instability of international joint ventures: The mediating role of asymmetrical changes in commitment," International Business Review, Elsevier, vol. 24(2), pages 298-310.
    13. Janowicz, M.K. & Noorderhaven, N.G., 2002. "The Role of Trust in Interorganizational Learning in Joint Ventures," Other publications TiSEM f10debea-9d7b-47c3-8d4f-b, Tilburg University, School of Economics and Management.
    14. Matthew J. Robson & Constantine S. Katsikeas & Daniel C. Bello, 2008. "Drivers and Performance Outcomes of Trust in International Strategic Alliances: The Role of Organizational Complexity," Organization Science, INFORMS, vol. 19(4), pages 647-665, August.
    15. 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.
    16. Ariño, Africa & Torre, Jose de la & Doz, Yves & Ring, Peter S. & Lorenzoni, Gianni, 1999. "Process issues in alliance management: A panel discussion," IESE Research Papers D/403, IESE Business School.
    17. Alexander T Mohr & Jonas Puck, 2013. "Revisiting the Trust-performance Link in Strategic Alliances," Management International Review, Springer, vol. 53(2), pages 269-289, April.
    18. 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.
    19. Le Nguyen, Huu & Larimo, Jorma & Ali, Tahir, 2016. "How do ownership control position and national culture influence conflict resolution strategies in international joint ventures?," International Business Review, Elsevier, vol. 25(2), pages 559-568.
    20. Kwok, Francis & Sharma, Piyush & Gaur, Sanjaya Singh & Ueno, Akiko, 2019. "Interactive effects of information exchange, relationship capital and environmental uncertainty on international joint venture (IJV) performance: An emerging markets perspective," International Business Review, Elsevier, vol. 28(5), pages 1-1.

    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:eee:iburev:v:26:y:2017:i:3:p:491-501. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description .

    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.