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Building trust in international alliances

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  • Parkhe, Arvind
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    Abstract

    Two facts stand out unambiguously in today's global business. One, international alliances are proliferating, underscoring the strategic importance managers increasingly attach to "competition through cooperation." Two, trust is key to successful international alliances. Together, these two facts point to the need to better understand trust, a task that was attempted in an earlier article (Parkhe, 1998). Yet such understanding, while necessary, is not sufficient. This article, the second of a two-part series, shows how partners can proactively manage an alliance relationship in order to develop trust. Toward this goal, the discussion includes trust generation through process-based, characteristic-based, and institutional-based mechanisms, which are to a significant degree within alliance managers' control. Managers must also be mindful of several critical features of alliance dynamics. These are described in some detail, as is the need to appropriately "calibrate" trust level in an alliance to the lifecycle stage of the alliance. With proper management attention, too much and too little trust can be avoided.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 33 (1998)
    Issue (Month): 4 (January)
    Pages: 417-437

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    Handle: RePEc:eee:worbus:v:33:y:1998:i:4:p:417-437

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    References

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    1. Parkhe, Arvind, 1998. "Understanding trust in international alliances," Journal of World Business, Elsevier, vol. 33(3), pages 219-240, October.
    2. Arvind Parkhe, 1991. "Interfirm Diversity, Organizational Learning, and Longevity in Global Strategic Alliances," Journal of International Business Studies, Palgrave Macmillan, vol. 22(4), pages 579-601, December.
    3. Lei, David & Slocum, John W. & Pitts, Robert A., 1997. "Building cooperative advantage: Managing strategic alliances to promote organizational learning," Journal of World Business, Elsevier, vol. 32(3), pages 203-223, October.
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    Cited by:
    1. 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.
    2. Ramírez Hurtado, J.M. & Guerrero Casas, F.M. & Rondán Cataluña, F.J., 2006. "Utilización del Análisis Conjunto para el estudio de las preferencias de los franquiciadores sobre el perfil de franquiciado/Using Conjoint Analysis to research franchisors’ preferences on franchi," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 24, pages 979-1012, Diciembre.
    3. Noorderhaven, N.G., 2000. "Hermeneutic Methodology and International Management Research," Open Access publications from Tilburg University urn:nbn:nl:ui:12-84047, Tilburg University.
    4. Per Erik Eriksson & Ossi Pesamaa, 2007. "Modelling procurement effects on cooperation," Construction Management and Economics, Taylor & Francis Journals, vol. 25(8), pages 893-901.
    5. Rosenkranz, Stephanie & Weitzel, Utz, 2005. "Is It Trust we Model? An Attempt to Calculate the Non-Calculative," CEPR Discussion Papers 5067, C.E.P.R. Discussion Papers.
    6. Rosalie Tung, 2005. "Perspectives—New Era, New Realities: Musings on a New Research Agenda… from an Old Timer," Asia Pacific Journal of Management, Springer, vol. 22(2), pages 143-157, June.
    7. Cooper, Robin & Slagmulder, Regine, 2004. "Interorganizational cost management and relational context," Accounting, Organizations and Society, Elsevier, vol. 29(1), pages 1-26, January.
    8. Link, Patrick & Marxt, Christian, 2004. "Integration of risk- and chance management in the co-operation process," International Journal of Production Economics, Elsevier, vol. 90(1), pages 71-78, July.
    9. Robson, Matthew J. & Paparoidamis, Nicholas & Ginoglu, Dimitrios, 2003. "Top management staffing in international strategic alliances: a conceptual explanation of decision perspective and objective formation," International Business Review, Elsevier, vol. 12(2), pages 173-191, April.
    10. Slater, Stephanie & Robson, Matthew J., 2012. "Cultural interpretations of destructive acts and trust in Japanese supply channel relationships," International Business Review, Elsevier, vol. 21(3), pages 357-368.
    11. 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.
    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. Sarstedt, Marko & Wilczynski, Petra & Melewar, T.C., 2013. "Measuring reputation in global markets—A comparison of reputation measures’ convergent and criterion validities," Journal of World Business, Elsevier, vol. 48(3), pages 329-339.
    14. Zeng, Ming, 2003. "Managing the cooperative dilemma of joint ventures: the role of structural factors," Journal of International Management, Elsevier, vol. 9(2), pages 95-113.
    15. Kumar, Rajesh & Rangan, U. Srinivasa & Rufín, Carlos, 2005. "Negotiating complexity and legitimacy in independent power project development," Journal of World Business, Elsevier, vol. 40(3), pages 302-320, August.
    16. Francesco L.Galassi & Lucy A. Newton, 2001. "My word is my bond ; reputation as collateral in nineteenth century English provincial banking," The Warwick Economics Research Paper Series (TWERPS) 599, University of Warwick, Department of Economics.
    17. Milanov, Hana & Fernhaber, Stephanie A., 2014. "When do domestic alliances help ventures abroad? Direct and moderating effects from a learning perspective," Journal of Business Venturing, Elsevier, vol. 29(3), pages 377-391.
    18. Feng-Hsu Liu & Hung-Tai Tsou & Lu-Jui Chen, 2013. "The impact of OEM supplier initiatives on buyer competence development: The moderating roles of collaborative relationship and competitive environment," Asia Pacific Journal of Management, Springer, vol. 30(4), pages 1285-1303, December.

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