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The nature, antecedents, and consequences of joint venture trust

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  • Inkpen, Andrew C.
  • Currall, Steven C.
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    Abstract

    Although trust has been identified as a critical factor in alliance management, rigorous conceptual and empirical developments of alliance trust have remained elusive. Our objective in this paper is to develop a conceptual understanding of joint venture (JV) trust. First, we define JV trust as reliance on another JV party (i.e., person, group, or firm) under a condition of risk. Reliance is volitional action by one party that allows that party's fate to be determined by the other party. Risk means that a party would experience potentially negative outcomes from the untrustworthiness of the other party. Thus, under a condition of risk, a JV partner's trust is signified by action that puts its fate in the hand of the other partner. Second, we review previous literature on trust and JVs and show that trust has been viewed from three different perspectives: structural, social, and psychological. Third, we develop a framework of the antecedents and consequences of JV trust. The factors considered as antecedents are: prior cooperative relationships, habitualization, individual attachment, organizational fit, and assessment of partner competence. Proposed consequences or outcomes of JV trust include forbearance, governance structures, relationship investments, increases in JV scope, and JV performance. From this framework, we identify various theoretical and methodological implications, and propose a research agenda.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of International Management.

    Volume (Year): 4 (1998)
    Issue (Month): 1 (July)
    Pages: 1-20

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    Handle: RePEc:eee:intman:v:4:y:1998:i:1:p:1-20

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    Related research

    Keywords: Trust joint ventures alliances;

    References

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    Cited by:
    1. Buckley, Peter J. & Clegg, Jeremy & Tan, Hui, 2006. "Cultural awareness in knowledge transfer to China--The role of guanxi and mianzi," Journal of World Business, Elsevier, vol. 41(3), pages 275-288, September.
    2. Globerman, Steven & Nielsen, Bo Bernhard, 2007. "Equity versus non-equity international strategic alliances involving Danish firms: An empirical investigation of the relative importance of partner and host country determinants," Journal of International Management, Elsevier, vol. 13(4), pages 449-471, December.
    3. Yeung, Jeff Hoi Yan & Selen, Willem & Zhang, Min & Huo, Baofeng, 2009. "The effects of trust and coercive power on supplier integration," International Journal of Production Economics, Elsevier, vol. 120(1), pages 66-78, July.
    4. Francis, John & Mukherji, Ananda & Mukherji, Jyotsna, 2009. "Examining relational and resource influences on the performance of border region SMEs," International Business Review, Elsevier, vol. 18(4), pages 331-343, August.
    5. Li, Peng-Yu & Meyer, Klaus E., 2009. "Contextualizing experience effects in international business: A study of ownership strategies," Journal of World Business, Elsevier, vol. 44(4), pages 370-382, October.
    6. 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.
    7. Lui, Steven S. & Ngo, Hang-yue & Hon, Alice H.Y., 2006. "Coercive strategy in interfirm cooperation: Mediating roles of interpersonal and interorganizational trust," Journal of Business Research, Elsevier, vol. 59(4), pages 466-474, April.
    8. Blanchot, Fabien, 2006. "Alliances et performances : un essai de synthèse," Economics Papers from University Paris Dauphine 123456789/2221, Paris Dauphine University.
    9. Huff, Lenard & Kelley, Lane, 2005. "Is collectivism a liability? The impact of culture on organizational trust and customer orientation: a seven-nation study," Journal of Business Research, Elsevier, vol. 58(1), pages 96-102, January.
    10. Teegen, Hildy, 1998. "Authority and trust in cross border partnerships: Mexican firm perspectives," Journal of International Management, Elsevier, vol. 4(3), pages 223-239, November.
    11. 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.

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