Building trust in international alliances
AbstractTwo 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of World Business.
Volume (Year): 33 (1998)
Issue (Month): 4 (January)
Contact details of provider:
Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/description#description
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Parkhe, Arvind, 1998. "Understanding trust in international alliances," Journal of World Business, Elsevier, vol. 33(3), pages 219-240, October.
- 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.
- 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.
- 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.
- 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.
- Noorderhaven, N.G., 2000.
"Hermeneutic Methodology and International Management Research,"
Open Access publications from Tilburg University
urn:nbn:nl:ui:12-84047, Tilburg University.
- Noorderhaven, Niels, 2000. "Hermeneutic methodology and international management research," Occasional Papers 2000/2, Uppsala University, Department of Business Studies.
- Per Erik Eriksson & Ossi Pesamaa, 2007.
"Modelling procurement effects on cooperation,"
Construction Management and Economics,
Taylor & Francis Journals, vol. 25(8), pages 893-901.
- 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.
- Stephanie Rosenkranz & Utz Weitzel, 2005. "Is it trust we model? An attempt to calculate the non-calculative," Working Papers 05-12, Utrecht School of Economics.
- 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.
- Cooper, Robin & Slagmulder, Regine, 2004. "Interorganizational cost management and relational context," Accounting, Organizations and Society, Elsevier, vol. 29(1), pages 1-26, January.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.