IDEAS home Printed from https://ideas.repec.org/p/zbw/mpifgd/0711.html
   My bibliography  Save this paper

German-Ukrainian business relationships: Trust development in the face of institutional uncertainty and cultural differences

Author

Listed:
  • Möllering, Guido
  • Stache, Florian

Abstract

The paper examines cultural differences and institutional uncertainty as important factors in the development of trust as a basis for successful international business relationships. The authors focus their investigation on the potential that actors have in becoming aware of and creatively responding to institutional contexts, cultural differences and the challenge of trust development. Empirically, the authors look at German-Ukrainian business relationships and draw on a qualitative analysis of field interviews conducted at the time of the so-called "Orange Revolution". They conclude overall that the trust dilemma in international business relationships can be overcome through reflexivity and creativity, and they give many practical examples of what this means.

Suggested Citation

  • Möllering, Guido & Stache, Florian, 2007. "German-Ukrainian business relationships: Trust development in the face of institutional uncertainty and cultural differences," MPIfG Discussion Paper 07/11, Max Planck Institute for the Study of Societies.
    • Handle: RePEc:zbw:mpifgd:0711
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/36524/1/549682481.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Frédérique Six, 2005. "The Trouble with Trust," Books, Edward Elgar Publishing, number 3778.
    2. Wendi L. Adair & Jeanne M. Brett, 2005. "The Negotiation Dance: Time, Culture, and Behavioral Sequences in Negotiation," Organization Science, INFORMS, vol. 16(1), pages 33-51, February.
    3. Mike W Peng, 2004. "Identifying the big question in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(2), pages 99-108, March.
    4. Burchell, Brendan & Wilkinson, Frank, 1997. "Trust, Business Relationships and the Contractual Environment," Cambridge Journal of Economics, Oxford University Press, vol. 21(2), pages 217-237, March.
    5. Akbar Zaheer & Bill McEvily & Vincenzo Perrone, 1998. "Does Trust Matter? Exploring the Effects of Interorganizational and Interpersonal Trust on Performance," Organization Science, INFORMS, vol. 9(2), pages 141-159, April.
    6. Gary Hamel, 1991. "Competition for competence and interpartner learning within international strategic alliances," Strategic Management Journal, Wiley Blackwell, vol. 12(S1), pages 83-103, June.
    7. Srilata Zaheer & Akbar Zaheer, 2006. "Trust across borders," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(1), pages 21-29, January.
    8. Branzei, Oana & Vertinsky, Ilan & Camp II, Ronald D., 2007. "Culture-contingent signs of trust in emergent relationships," Organizational Behavior and Human Decision Processes, Elsevier, vol. 104(1), pages 61-82, September.
    9. Karen L Newman & Stanley D Nollen, 1996. "Culture and Congruence: The Fit Between Management Practices and national Culture," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(4), pages 753-779, December.
    10. Vincenzo Perrone & Akbar Zaheer & Bill McEvily, 2003. "Free to Be Trusted? Organizational Constraints on Trust in Boundary Spanners," Organization Science, INFORMS, vol. 14(4), pages 422-439, August.
    11. Varese, Federico, 2001. "The Russian Mafia: Private Protection in a New Market Economy," OUP Catalogue, Oxford University Press, number 9780198297369, Decembrie.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Muethel, Miriam & Hoegl, Martin, 2012. "The influence of social institutions on managers’ concept of trust: Implications for trust-building in Sino-German relationships," Journal of World Business, Elsevier, vol. 47(3), pages 420-434.
    2. Tsamenyi, Mathew & Qureshi, Ahmad Z. & Yazdifar, Hassan, 2013. "The contract, accounting and trust: A case study of an international joint venture (IJV) in the United Arab Emirates (UAE)," Accounting forum, Elsevier, vol. 37(3), pages 182-195.
    3. Liu, C.-L.E., 2012. "An investigation of relationship learning in cross-border buyer–supplier relationships: The role of trust," International Business Review, Elsevier, vol. 21(3), pages 311-327.
    4. Buckley, Peter J. & Cross, Adam & De Mattos, Claudio, 2015. "The principle of congruity in the analysis of international business cooperation," International Business Review, Elsevier, vol. 24(6), pages 1048-1060.
    5. Stienstra, Miranda, 2020. "The determinants and performance implications of alliance partner acquisition," Other publications TiSEM 7fdee0c2-d4d2-4f5b-95e3-2, Tilburg University, School of Economics and Management.
    6. Ranjay Gulati & Maxim Sytch, 2008. "Does familiarity breed trust? Revisiting the antecedents of trust," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(2-3), pages 165-190.
    7. 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.
    8. Matthew J. Robson & Constantine S. Katsikeas & Daniel C. Bello, 2008. "Drivers and Performance Outcomes of Trust in International Strategic Alliances: The Role of Organizational Complexity," Organization Science, INFORMS, vol. 19(4), pages 647-665, August.
    9. Mallin, Michael L. & Asree, Susita & Koh, Anthony C. & Hu, Michael Y., 2010. "Antecedents to managerial trust and sales control in Malaysian salesforce," International Business Review, Elsevier, vol. 19(3), pages 292-305, June.
    10. Vincenzo Perrone, 2013. "Sympathy for the devil? Reflections on the perils of institutionalising trust research," Journal of Trust Research, Taylor & Francis Journals, vol. 3(2), pages 155-171, October.
    11. Bill McEvily & Akbar Zaheer & Darcy K. Fudge Kamal, 2017. "Mutual and Exclusive: Dyadic Sources of Trust in Interorganizational Exchange," Organization Science, INFORMS, vol. 28(1), pages 74-92, February.
    12. Paul Brockman & Sadok El Ghoul & Omrane Guedhami & Ying Zheng, 2022. "Does social trust affect international contracting? Evidence from foreign bond covenants," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 1011-1044, August.
    13. Bill McEvily & Vincenzo Perrone & Akbar Zaheer, 2003. "Trust as an Organizing Principle," Organization Science, INFORMS, vol. 14(1), pages 91-103, February.
    14. Outila, Virpi & Mihailova, Irina & Reiche, B. Sebastian & Piekkari, Rebecca, 2020. "A communicative perspective on the trust-control link in Russia," Journal of World Business, Elsevier, vol. 55(6).
    15. Castaner, X. & Mulotte, L. & Garrette, B. & Dussauge, P., 2013. "Governance mode vs. governance fit? : Performance implications of make-or-ally choices for product innovation in the worldwide aircraft industry, 1942-2000," Other publications TiSEM a5741dc4-b632-4fae-9632-8, Tilburg University, School of Economics and Management.
    16. Reuer, Jeffrey J. & Ariño, Africa, 2002. "Contractual heterogeneity in strategic alliances," IESE Research Papers D/482, IESE Business School.
    17. Milovanović, Bojan Morić & Primorac, Dinko & Kozina, Goran, 2019. "Influence of Strategic Networking on Business Performance; Evidence from Manufacturing SMEs Operating in a Predominantly Service Based Economy," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2019), Rovinj, Croatia, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Rovinj, Croatia, 12-14 September 2019, pages 108-119, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.
    18. Carole Couper & A. Rebecca Reuber & Shameen Prashantham, 2020. "Lost that lovin’ feeling: The erosion of trust between small, high-distance partners," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(3), pages 326-352, April.
    19. Skokic, Vlatka & Coh, Marko, 2017. "How do executive search firms increase interest in career opportunities? The role of past interactions," European Management Journal, Elsevier, vol. 35(4), pages 505-513.
    20. George Chondrakis & Mari Sako, 2020. "When suppliers shift my boundaries: Supplier employee mobility and its impact on buyer firms' sourcing strategy," Strategic Management Journal, Wiley Blackwell, vol. 41(9), pages 1682-1711, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:mpifgd:0711. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/mpigfde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.