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Opportunism and trust in joint venture relationships: an exploratory study and a model

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  • Madhok, Anoop

Abstract

This paper discusses two approaches towards managing interorganizational relationships, based on opportunism and trust respectively. Data is presented from interviews conducted with four managers to investigate the relevance of these two approaches in their joint venture relationships. Both the approaches are found to be important but play different roles at different stages of the relationship. A conceptual model is then developed to represent the relationship process in terms of its formation and sustenance. In spite of differences between the two approaches, they share common objectives of efficiency and flexibility. It is useful to consider them as complementary to one another, with transaction costs being viewed more broadly to incorporate both the opportunism-avoidance as well as the trust-creation dimensions of interorganizational relationships.

Suggested Citation

  • Madhok, Anoop, 1995. "Opportunism and trust in joint venture relationships: an exploratory study and a model," Scandinavian Journal of Management, Elsevier, vol. 11(1), pages 57-74, March.
    • Handle: RePEc:eee:scaman:v:11:y:1995:i:1:p:57-74
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