Revisiting Interorganizational Trust: Is More Always Better or Could More Be Worse?

Verónica H. Villena, Thomas Choi, Elena Revilla

    Research output: Contribution to journalArticle

    4 Citations (Scopus)

    Abstract

    This study conducts an investigation of interorganizational trust and its positive and negative effects. We consider how positive and negative effects operate differently under two types of uncertainties—buyer dependence and market instability. Trust is studied in the buyer–supplier relationship (BSR) context from the buyer’s perspective. The analysis is conducted based on survey data and secondary archival data from a sample of 133 BSRs. Results show that trust follows an inverted-U shape with performance. There is a point at which the negative effects of trust offset its benefits, and beyond that point, performance declines. The results also suggest that the positive and negative effects of trust become more pronounced when buyers are highly dependent on suppliers or when environmental uncertainty surrounding buyers is low. Trust’s negative effects are more severe for those buyers that are highly dependent and operate in stable markets.

    Original languageEnglish (US)
    Pages (from-to)752-785
    Number of pages34
    JournalJournal of Management
    Volume45
    Issue number2
    DOIs
    StatePublished - Feb 1 2019

    Fingerprint

    Inter-organizational trust
    Buyers
    Buyer-supplier relationships
    Inverted-U
    Suppliers
    Survey data
    Environmental uncertainty

    Keywords

    • dependence
    • interorganizational trust
    • market instability
    • performance

    ASJC Scopus subject areas

    • Finance
    • Strategy and Management

    Cite this

    Revisiting Interorganizational Trust : Is More Always Better or Could More Be Worse? / Villena, Verónica H.; Choi, Thomas; Revilla, Elena.

    In: Journal of Management, Vol. 45, No. 2, 01.02.2019, p. 752-785.

    Research output: Contribution to journalArticle

    Villena, Verónica H. ; Choi, Thomas ; Revilla, Elena. / Revisiting Interorganizational Trust : Is More Always Better or Could More Be Worse?. In: Journal of Management. 2019 ; Vol. 45, No. 2. pp. 752-785.
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