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The effects of trust on performance of high-tech business relationships

  • Jong, Gjalt de
  • Klein Woolthuis, Rosalinde

    (Groningen University)

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    We investigate the effects of trust propensity, cognition based trust and affect based trust on relationship performance in terms of openness, conflicts and success. Data from a field study of 391 Dutch firms in high tech industries support the research model. Trust that derives from affection is key and outweighs cognition based trust and trust propensity. Openness increases success that in turn fosters the development of affect based trust. The results provide preliminary but convincing evidence for the value of relational capital in durable business relationships that strive for the development of new technological knowledge.

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    File URL: http://irs.ub.rug.nl/ppn/265446481
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    Paper provided by University of Groningen, Research Institute SOM (Systems, Organisations and Management) in its series Research Report with number 04G06.

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    Date of creation: 2004
    Date of revision:
    Handle: RePEc:dgr:rugsom:04g06
    Contact details of provider: Postal: PO Box 800, 9700 AV Groningen
    Phone: +31 50 363 7185
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    Web page: http://som.eldoc.ub.rug.nl/
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    1. Falk, Armin & Fehr, Ernst, 2002. "Psychological Foundations of Incentives," CEPR Discussion Papers 3185, C.E.P.R. Discussion Papers.
    2. Lyons, Bruce R & Mehta, Judith, 1997. "Contracts, Opportunism and Trust: Self-Interest and Social Orientation," Cambridge Journal of Economics, Oxford University Press, vol. 21(2), pages 239-57, March.
    3. Nooteboom, B. & Berger, H. & Noorderhaven, N.G., 1997. "Effects of trust and governance on relational risk," Other publications TiSEM 8e83932e-064c-40e8-afe7-4, Tilburg University, School of Economics and Management.
    4. Fehr, Ernst & Klein, Alexander & Schmidt, Klaus M., 2001. "Fairness, Incentives and Contractual Incompleteness," CEPR Discussion Papers 2790, C.E.P.R. Discussion Papers.
    5. Balakrishnan, Srinivasan & Koza, Mitchell P., 1993. "Information asymmetry, adverse selection and joint-ventures : Theory and evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 20(1), pages 99-117, January.
    6. Sako, Mari & Helper, Susan, 1998. "Determinants of trust in supplier relations: Evidence from the automotive industry in Japan and the United States," Journal of Economic Behavior & Organization, Elsevier, vol. 34(3), pages 387-417, March.
    7. Chen, Yongmin, 2000. "Promises, Trust, and Contracts," Journal of Law, Economics and Organization, Oxford University Press, vol. 16(1), pages 209-32, April.
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