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Governments, reciprocal exchange and trust among business associates


  • Alaka N Rao

    (Graduate School of Management, University of California, Irvine, USA)

  • Jone L Pearce

    (Graduate School of Management, University of California, Irvine, USA)

  • Katherine Xin

    (China Europe International Business School (CEIBS), Shanghai, China)


Both Pearce and Molm have conducted research in interpersonal trust. Here we apply their work to international business by deriving hypotheses from their work, some compatible, some conflicting. We test them with data from managers in China, the United States, Hong Kong and Thailand using measures from the World Bank, World Competitiveness Report, and Transparency International and managerial interviews. We find support for Pearce's arguments on the effects of governmental facilitation on managers' trust in their business partners, and for extensions of Molm's work on reciprocal exchange to international field settings. For the conflicting hypotheses, results support Pearce's arguments that the structural assurances of facilitative governments lead to higher levels of trust in business associates. Journal of International Business Studies (2005) 36, 104–118. doi:10.1057/palgrave.jibs.8400116

Suggested Citation

  • Alaka N Rao & Jone L Pearce & Katherine Xin, 2005. "Governments, reciprocal exchange and trust among business associates," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(1), pages 104-118, January.
  • Handle: RePEc:pal:jintbs:v:36:y:2005:i:1:p:104-118

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    Cited by:

    1. Junsheng Dou & Shengxiao Li, 2013. "The succession process in Chinese family firms: A guanxi perspective," Asia Pacific Journal of Management, Springer, vol. 30(3), pages 893-917, September.
    2. repec:eee:jbrese:v:90:y:2018:i:c:p:171-185 is not listed on IDEAS
    3. Qin, Zhong, 2011. "Models of trust-sharing in Chinese private enterprises," Economic Modelling, Elsevier, vol. 28(3), pages 1017-1029, May.
    4. repec:eee:techno:v:66-67:y:2017:i::p:43-56 is not listed on IDEAS
    5. Hutzschenreuter, Thomas & Kleindienst, Ingo & Lange, Sandra, 2014. "Added Psychic Distance Stimuli and MNE Performance," Journal of International Management, Elsevier, vol. 20(1), pages 38-54.

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