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The nature, antecedents, and consequences of joint venture trust

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

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.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:intman:v:4:y:1998:i:1:p:1-20
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    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. 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.
    4. 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.
    5. Heribert Gierl & Sandra Praxmarer, 2007. "Die Wirkung der Positionierung eines Zulieferunternehmens auf das Vertrauen des Kunden," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 18(2), pages 187-206, August.
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    7. 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.
    8. 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.
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    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. Matthias Meier & Martina Lütkewitte & Thomas Mellewigt & Carolin Decker, 2016. "How managers can build trust in strategic alliances: a meta-analysis on the central trust-building mechanisms," Journal of Business Economics, Springer, vol. 86(3), pages 229-257, April.
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    17. 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.

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