Search results
1 – 10 of over 48000Business networks have to coordinate each of their partners' goals and expectations, as a lack of partner compatibility and goal incongruence could lead to conflict and…
Abstract
Purpose
Business networks have to coordinate each of their partners' goals and expectations, as a lack of partner compatibility and goal incongruence could lead to conflict and opportunistic behavior. These potential problems highlight the relevance of partner selection as a means of minimizing opportunistic behavior by building trust in and commitment to a network that influences network performance. The purpose of this paper is to provide insights into partner selection as a management control mechanism, which controls the behavior and network performance of business network partners.
Design/methodology/approach
The paper provides an analysis of the effects of a well‐executed partner selection on business networks' performance. The paper further analyzes the effects of the mediating role of trust within, commitment to, and the risk of opportunistic behavior in business networks. Consequently, the paper highlights the pivotal role of partner selection in business networks as a management control mechanism.
Findings
The results provide an exploratory empirical insights into the cause‐and‐effect relationship between partner selection, partners' behavior, and network performance. Partner selection has effects on trust, opportunism, and commitment. The selection of a partner is a very important managerial control task within business networks, as appropriate selection is a threshold condition for a successful business network.
Research limitations/implications
Since the study is based on empirical data collected by individuals, it could be open to general criticism regarding the methodology of broad empirical analysis. Time‐lagging effects also remain unrevealed as the data represent only a point in time. Some effects cannot be verified indisputably, while the low variance in some of the construct results is only indicative of suggestions.
Originality/value
This paper provides insights into partner selection as a management control mechanism, which controls the behavior and network performance of business network partners.
Details
Keywords
Jhih‐Ming Lai, Gwo‐Guang Lee and Wei‐Lin Hsu
The purpose of this paper is to examine the influence of partnership (i.e. partner's trust and commitment) on electronic commerce strategic planning (ECSP), and the strategic…
Abstract
Purpose
The purpose of this paper is to examine the influence of partnership (i.e. partner's trust and commitment) on electronic commerce strategic planning (ECSP), and the strategic benefits of expanding partnership. Beyond this research objective, this paper attempts to draw conclusions on the benefits of seeing such trust and commitment as common sense.
Design/methodology/approach
A total of 166 Chief information officers were selected from the top 1000 largest firms in Taiwan to test the relations within the research model. Moreover, the structural equation modeling technique was used to evaluate the research model.
Findings
Partner trust significantly influences electronic commerce strategic planning. The results also indicate that the success of ECSP enables firms to achieve the strategic benefits of electronic commerce.
Research limitations/implications
This study demonstrates the need to separate the partner's trust and commitment from the environmental context when discussing certain questions related to environmental issues. Future ECSP studies could seek an enhanced understanding of the effects on investigations of other attributes of partnership.
Practical implications
Top managers and information system executives who are considering the process of ECSP must know that the first step is to acquire the partner's trust. And then, they need to make a commitment to their partners in order to gain the strategic benefits. The skills and actions to achieve these steps should become common sense for these executives.
Originality/value
This paper contributes to ECSP research by clarifying the effects of both partner trust and partner commitment on the ECSP, and provides a valuable reference for EC strategic planners, as well as researchers interested in EC strategic planning and management.
Details
Keywords
Tahir Ali and Saba Khalid
This study aims to investigate the relationship between trust and performance in international joint ventures (IJVs) with the moderating effects of the structural mechanisms from…
Abstract
Purpose
This study aims to investigate the relationship between trust and performance in international joint ventures (IJVs) with the moderating effects of the structural mechanisms from transaction cost approach.
Design/methodology/approach
Using web-survey, data are collected from 89 IJVs of Northern European firms in Asia, Europe and America. Empirical data are analyzed with structural equation modeling and estimates moderating effects of symmetric dependence, symmetric equity share and resource complementarity.
Findings
The findings offer some interesting insights for transaction cost and the social exchange theory. This study demonstrates that a symmetric equity share between IJV partners does not moderate the trust–performance relationship, while a symmetric dependence and resource complementarity between partners effect positively. Therefore, trust takes on greater importance in enhancing IJV performance under symmetric dependence and resource complementarity and symmetric equity share between IJV partners deprecates the importance of equity distribution.
Practical implications
A symmetric dependence prevents the deceit from either partner in trusting relationships. Further, a trustful relationship enhances IJV performance regardless of the equity share in IJVs. IJVs with asymmetric equity share can also be successful, provided that IJV partners develop inter-partner trust.
Originality/value
The extant research has not examined how the trust–performance relationship is contingent on structural mechanisms of IJVs that transaction cost economics deem necessary to prevent opportunistic behavior. Three structural mechanisms of symmetric dependence, symmetric equity share and resource complementarity moderate the trust–performance relationship in IJVs.
Details
Keywords
Leung Wai On, Xin Liang, Richard Priem and Margaret Shaffer
This study seeks to identify antecedents of trust among top managers representing partners in international joint ventures (IJVs) and to show how this trust influences IJV…
Abstract
Purpose
This study seeks to identify antecedents of trust among top managers representing partners in international joint ventures (IJVs) and to show how this trust influences IJV performance.
Design/methodology/approach
The paper proposes that the national cultural distance of the foreign partner, the business similarity of partners' organizations and behavioural integration are antecedents to trust, and that trust is a key mediator through which these antecedents affect IJV performance. Data are collected through a field survey from IJVs in Beijing and Shenzhen, PRC, and employ regression analysis to test these propositions.
Findings
It is found that: trust across IJV factional subgroups is influenced by partners' business similarity and by the behavioural integration of top managers representing the partners from both sides; and this trust mediates the relationship between the behavioural integration of top managers in Sino‐foreign IJVs and overall venture performance. The effects of business similarity and partner national cultural distance on overall performance were not mediated by trust.
Research limitations/implications
The sample of the study used is limited to one country only – China. Besides, the paper's measures of cultural distance and categorization of national origin of foreign partners of IJVs may be subject to criticism.
Practical implications
First, the paper explicitly hypothesizes and tests the role of trust as a mediator of the relationships between trust antecedents and IJV performance. This is done in order to develop a more detailed understanding of how fixed partner characteristics and adjustable group processes affect IJV outcomes. Second, the study finds evidence that supports situational perspective and developmental perspective of trust development, but not the deterministic perspective. This is also consistent with some additional qualitative evidence which the authors collected through interviews. Third, the results indicate that some trust antecedents have direct effects on IJV performance, while others affect IJV performance through partner trust.
Originality/value
The study's exploratory results offer important new information for IJV researchers and for managers of IJVs.
Details
Keywords
This paper aims to investigate how a Chinese firm’s strategic orientation impact its knowledge acquisition from its foreign alliance partners through governance mechanisms used in…
Abstract
Purpose
This paper aims to investigate how a Chinese firm’s strategic orientation impact its knowledge acquisition from its foreign alliance partners through governance mechanisms used in the Sino-foreign alliance partnership.
Design/methodology/approach
This research first proposes an integrated model which links a firm’s strategic orientations (entrepreneurial and market orientations), governance mechanism (contract and trust controls), and its knowledge acquisition together. Then, this research collected data from 198 Chinese firms involved in Sino-foreign alliances to test the conceptual model.
Findings
For entrepreneurial-oriented alliance firms, a moderate level of contract and a high level of trust are the most efficient uses of control mechanisms for Chinese firms’ knowledge acquisition. In comparison, for market-oriented alliance firms, both contract and trust control mechanisms should be used at the moderate level to achieve maximum knowledge acquisition from their foreign partners.
Originality/value
By introducing a new antecedent for the choice of control mechanisms in the context of Sino-foreign alliance relationships, this study empirically finds a non-linear relationship between contract control and knowledge acquisition and confirms the significant role of trust in facilitating knowledge acquisition between alliance partners from the perspective of alliance firms in emerging markets.
Details
Keywords
Florence Yean Yng Ling and Hoang Bao Tram Tran
A construction project typically involves many participants such as owners, consultants, contractors, subcontractors and suppliers. It is important for them to have harmonious…
Abstract
Purpose
A construction project typically involves many participants such as owners, consultants, contractors, subcontractors and suppliers. It is important for them to have harmonious relationships so that the project can be completed expeditiously. Trust is a critical factor to maintain harmonious relationships. The purpose of this paper is to investigate the ingredients to bring about trust in construction project teams in Vietnam. The specific objectives were to investigate the existence of personal trust, explore relationship between trust and project outcomes, and identify attributes that help to improve trust.
Design/methodology/approach
This research employed questionnaire survey as the research method and collected data via face‐to‐face and e‐mail interviews. The sample comprised randomly selected construction practitioners in Vietnam. Data were analyzed using the SPSS software.
Findings
The results showed that trust exists between members of construction project team members in Vietnam. It was found that trust can leverage project quality and client satisfaction. In this regard, a number of factors were found to be significantly important to the development of trust.
Research limitations/implications
The sample size was relatively small.
Practical implications
When operating in Vietnam, practitioners should adopt a long‐term mindset so as to develop trust. They should also select partners who have good reputations as these are more trustworthy.
Originality/value
This study contributes to knowledge by showing that trust exists between individuals participating in construction projects in Vietnam and it leads to higher output quality and client satisfaction. Unique attributes to increase trust in Vietnam were also uncovered.
Details
Keywords
Mei‐Ying Wu, Yung‐Chien Weng and I‐Chiao Huang
The purpose of this paper is to use high‐tech companies in Taiwan as research subjects to verify the fit of the commitment‐trust theory and explore the supply chain relationships…
Abstract
Purpose
The purpose of this paper is to use high‐tech companies in Taiwan as research subjects to verify the fit of the commitment‐trust theory and explore the supply chain relationships among research variables.
Design/methodology/approach
The key mediating variables model (KMV) proposed by Morgan and Hunt is applied to construct the research structure, hypotheses, and questionnaire. The research hypotheses are validated through structural equation modelling and confirmatory factor analysis.
Findings
Research results show that for two parties of an exchange relationship, higher levels of trust can lead to better interactions and trust is an important factor affecting their supply chain partnerships. It helps increase interests of both parties, facilitate constant co‐operation and communication, and reduce uncertainties. Higher levels of commitment can also help increase value benefits, reduce a partner's propensity to leave, and enhance supply chain co‐operation efficiency.
Originality/value
Empirical results indicate that relationship marketing is a strategy that promotes trust and commitment of partners in high‐tech industries. While information sharing and communication can increase partners' intention of long‐term co‐operation, functional conflicts can facilitate positive interactions and reduce uncertainties. Through relationship marketing, high‐tech companies can create win‐win strategic alliances to develop their competitive advantages in the market.
Details
Keywords
Farid Ahmed, Felicitas Evangelista and Daniela Spanjaard
Relationship marketing has been playing an important role in the development of marketing theory and practice. Though the concept has been extensively applied in international…
Abstract
Purpose
Relationship marketing has been playing an important role in the development of marketing theory and practice. Though the concept has been extensively applied in international marketing in understanding the dynamics of exporter-importer relationships, few studies have looked at dyadic data to investigate the impact of mutuality of relational variables on the exporter-importer relationships. The objective of this study is to understand the impact of mutuality of key relational variables on exporter-importer relationship performance. A dyadic model of mutuality is proposed. The model highlights the impact of balance, level and quality of perceptual bi-directionality of relational variables.
Design/methodology/approach
The model was tested using dyadic data collected from exporter-importer relationships involving Australian exporters and their Southeast Asian import partners through a cross-sectional, quantitative survey. Mutuality of relationship constructs was measured using the perceptual bi-directionality (PBD) method.
Findings
The results support the central hypothesis that mutuality of relational constructs has an impact on relationship performance.
Originality/value
The study is the first to apply the perceptual bi-directionality method to measure mutuality of relational constructs in an exporter-importer setting. The study contributes to the general understanding of international business and exporter-importer relationship performance in particular.
Details
Keywords
Jinjie Xue, Shaokai Lu, Benshan Shi and Haiping Zheng
The purpose of this paper is to provide a conceptual model for examining the effects of trust (competence trust, goodwill trust) and cooperation on partner opportunism and for…
Abstract
Purpose
The purpose of this paper is to provide a conceptual model for examining the effects of trust (competence trust, goodwill trust) and cooperation on partner opportunism and for exploring the moderating effects of guanxi on the relationships among trust, cooperation and opportunism in joint ventures.
Design/methodology/approach
The sample for this paper comprises 981 manufacturing joint ventures from various industrial sectors. A total of 354 valid questionnaires were collected, representing a 36 per cent response rate. The conceptual model is tested with structural equation modeling adopting AMOS software.
Findings
The empirical findings indicate that both competence trust and goodwill trust reduce partner opportunism in a joint venture through fostering cooperation. Competence trust also exerts significant influence on preventing opportunism, whereas opportunistic behavior is not greatly affected by goodwill trust. Additionally, the results reveal that guanxi helps strengthen the negative relationship between cooperation and opportunism.
Originality value
This paper makes a threefold contribution: First, it investigates empirically the direct influence of two types of trust on partner opportunism. Second, it tests indirect influence of trust on partner opportunism through the path of cooperation. Third, it explores the moderating effects of guanxi in relationships on trust, cooperation and partner opportunism. Implications offers suggestions for management practice to reduce partner opportunism in joint-venture manufacturing.
Details
Keywords
Yasir Yasin Fadol and Maqsood Ahmad Sandhu
The purpose of this study is to explore the role of trust in the relationships and long‐term commitment between partners in strategic alliances. A framework is developed for…
Abstract
Purpose
The purpose of this study is to explore the role of trust in the relationships and long‐term commitment between partners in strategic alliances. A framework is developed for better understanding the role of trust in the performance of strategic alliances in a cross‐cultural context.
Design/methodology/approach
The empirical findings of this study are gathered from structured and unstructured interviews with some key actors involved in the process of forming strategic alliances in their own organizations; a case study of the oil industry in the United Arab Emirates (UAE) which illustrates this is analysed. Qualitative analysis is conducted to assess the role of trust in this cross‐cultural context.
Findings
It was noted that building trust between partners helped to avoid bureaucratic obstructions and enhanced the decision making process in the UAE. It was found that trust helped partners to exchange resources faster, devote more funds to the venture and exchange knowledge and information smoothly. The results clearly show that trust plays an important role in building well‐functioning relationships in the oil and gas industry.
Research limitations/implications
This study is limited to the UAE and can be generalized to other similar cultural contexts only to a certain extent. Future research should consider the same parameters in order to fully generalize the results to other industries.
Practical implications
The paper presents a case study of the nature and characteristics of partners in the oil and gas industry, which may be applied to other similar industries. It is hoped that presenting practical tools for understanding the function of trust in strategic alliance performance may be useful.
Originality/value
This framework makes two major contributions; first, it explores a subject which has been under‐researched in the literature, that is, the issue of trust between partners of strategic alliances in a developing context; and, second, it leads to a set of recommendations and benchmarks the practitioners in the UAE and similar contexts to help them increase the trust between partners in strategic alliances.
Details