Antecedents of Interorganizational Trust: Joint Decision‐Making, Cultural Adaptation, and Bargaining Power

Abstract

The primary purpose of this study is to explore the antecedents of interorganizational trust within an international joint venture (IJV) context. In exploring how interorganizational trust is developed during the course of managing IJVs, we will look at fair action as a key factor in building interorganizational trust. Based on the existing literature, we propose the fair joint decision‐making process, cultural adaptation and the fair distribution of bargaining power as being antecedents of interorganizational trust within the IJV context. After developing hypotheses about the relationships between these three antecedents and interorganizational trust as well as causal relations between the antecedents, an empirical study is conducted using a sample comprised of 109 IJVs located in Korea. The findings show that perceived fairness in the joint decision‐making process and the distribution of bargaining power directly affects trust‐building between IJV participants; and also reveal the indirect effects of cultural adaptation on the development of interorganizational trust.

Investigating relationships between relationship quality, customer loyalty and cooperation

“…Rapid and uncertain changes in the franchise field may take it necessary for regular contact between franchisors and franchisees for franchisors to keep on top of events. Fairness in the joint decision-making process is also necessary for two parties to enhance two-way trust in communication process (Ando and Rhee, 2009). Several practical studies in franchise management suggest that communication is the road to solid franchise relationships (Laurie, 2000;Kane, 2001).…”

Factors shaping interorganizational trust in e-commerce based on literature review

“…This adaptation not only builds a deep understanding but also minimizes confl icts that may arise due to cultural differences. This adaptation leads to an attitude of contractors as an expression of respect and care (Ando and Rhee, 2009). Research also shows that company results are greatly infl uenced by inter-organizational relationships, which are largely infl uenced by the performance of the partners with whom they work.…”

“…Other important factors for business partners are internal factors, i.e. : joint decision-making, cultural adaptation and a fair distribution of bargaining power (Ando and Rhee, 2009), because it demonstrates the justice that characterizes an organization. Cultural adaptation is a key aspect, especially in organizations cooperating with partners from various cultures.…”

“…For the purposes of this study, an approach was used to show interorganizational trust from four perspectives, i.e. :   benevolence trust (Ando and Rhee, 2009),   integrity trust (Chen et al 2015),   competence trust (Ellonen et al 2008)   general trust (Mukherjee, 2012). Chowdhury (2005, p. 3) stated that "trust based on benevolence, i.e.…”

“…In this article, based on the scientifi c achievements of these studies, an attempt was made to show the structure of trust, which is presented in four spheres and in a different defi nition of light. Such areas are characterized by benevolence trust (Ando and Rhee, 2009), integrity trust (Chen et al 2015), competence trust (Ellonen et al 2008) and general trust (Mukherjee, 2012). The purpose of the article is to isolate from these spheres, based on the results of research published in world literature, external and internal factors shaping the level of inter-organizational trust in e-commerce (B2B and B2C).…”