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Understanding trust in international alliances

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  • Parkhe, Arvind

Abstract

Many firms are discovering that formal contracts, while necessary, are not a substitute for informal understandings. Trust plays in important (often dominant) role in successful alliances, and managers often cite lack of trust as a key reason for failed alliances. This paper attemps to deepen our understanding of trust, by systematically examining the psychological, sociological, and economic components of trust, intercultural differences in the notion of trust, and the various mechanisms through which trust may be generated. A follow-up paper, "Building Trust in International Alliances," shows how partners can proactively manage an alliance relationship in order to develop trust.

Suggested Citation

  • Parkhe, Arvind, 1998. "Understanding trust in international alliances," Journal of World Business, Elsevier, vol. 33(3), pages 219-240, October.
  • Handle: RePEc:eee:worbus:v:33:y:1998:i:3:p:219-240
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    References listed on IDEAS

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    1. Arvind Parkhe, 1991. "Interfirm Diversity, Organizational Learning, and Longevity in Global Strategic Alliances," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(4), pages 579-601, December.
    2. Baughn, C. Christopher & Denekamp, Johannes G. & Stevens, John H. & Osborn, Richard N., 1997. "Protecting intellectual capital in international alliances," Journal of World Business, Elsevier, vol. 32(2), pages 103-117, July.
    3. Fey, Carl F., 1995. "Success strategies for russian-foreign joint ventures," Business Horizons, Elsevier, vol. 38(6), pages 49-54.
    4. 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.
    5. Erin Anderson & Barton Weitz, 1989. "Determinants of Continuity in Conventional Industrial Channel Dyads," Marketing Science, INFORMS, vol. 8(4), pages 310-323.
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    Cited by:

    1. Laura DINCA, 2014. "Internal And External Network Enterprises General Approaches," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 8(1), pages 428-433, November.
    2. Fregidou-Malama, Maria & Hyder, Akmal S., 2015. "Impact of culture on marketing of health services – Elekta in Brazil," International Business Review, Elsevier, vol. 24(3), pages 530-540.
    3. Erkan Ilgün & Kasim Tatic, 2012. "Application Of Oli-Paradigm Of German Fdi Inflows In Turkey," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 10(2), pages 29-40.
    4. 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.
    5. Dasí-Rodríguez, Sonia & Pardo-del-Val, Manuela, 2015. "Seeking partners in international alliances: The influence of cultural factors," Journal of Business Research, Elsevier, vol. 68(7), pages 1522-1526.
    6. repec:nms:mamere:1861-9908_mrev_2006_01_eriksson is not listed on IDEAS
    7. Anne Norheim-Hansen, 2015. "Are ‘Green Brides’ More Attractive? An Empirical Examination of How Prospective Partners’ Environmental Reputation Affects the Trust-Based Mechanism in Alliance Formation," Journal of Business Ethics, Springer, vol. 132(4), pages 813-830, December.
    8. Andrew C. Inkpen & Steven C. Currall, 2004. "The Coevolution of Trust, Control, and Learning in Joint Ventures," Organization Science, INFORMS, vol. 15(5), pages 586-599, October.
    9. 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.
    10. Noorderhaven, Niels, 2000. "Hermeneutic methodology and international management research," Occasional Papers 2000/2, Uppsala University, Department of Business Studies.
    11. 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.
    12. Ayşe Elif Şengün & Çetin Önder, 2011. "The Conditional Impact of Competence Trust on Inter-Firm Learning in a Collectivist SME Context," Industry and Innovation, Taylor & Francis Journals, vol. 18(8), pages 791-812, November.
    13. Beamish, Paul W. & Lupton, Nathaniel C., 2016. "Cooperative strategies in international business and management: Reflections on the past 50 years and future directions," Journal of World Business, Elsevier, vol. 51(1), pages 163-175.
    14. repec:eee:iburev:v:26:y:2017:i:3:p:491-501 is not listed on IDEAS
    15. Sang Lee & Seong-bae Lim, 2007. "Factors influencing suppliers’ participation in private electronic markets," Service Business, Springer;Pan-Pacific Business Association, vol. 1(1), pages 41-62, March.
    16. Janowicz-Panjaitan, Martyna & Noorderhaven, Niels G., 2008. "Formal and informal interorganizational learning within strategic alliances," Research Policy, Elsevier, vol. 37(8), pages 1337-1355, September.
    17. Laura Dinca, 2012. "Trust – Key Factor In Stability And Development Of Network Enterprises," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 1(40), pages 83-88.
    18. Huo, Baofeng & Ye, Yuxiao & Zhao, Xiande, 2015. "The impacts of trust and contracts on opportunism in the 3PL industry: The moderating role of demand uncertainty," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 160-170.
    19. Parkhe, Arvind, 1998. "Building trust in international alliances," Journal of World Business, Elsevier, vol. 33(4), pages 417-437, January.
    20. repec:eee:jouret:v:88:y:2012:i:1:p:72-87 is not listed on IDEAS

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