Mutual trustworthiness as a governance mechanism in business relationships — A dyadic data analysis

Abstract

Purpose -Several researchers have pointed out that trust is a relational attribute that has to be analyzed in situations associated with risk and vulnerability; and that analyzing it needs a dyadic operationalization and analysis, especially when mutuality is a key concept of the research design. Based on a literature review we develop a state of the art research profile that illustrates, today's survey based trust related empirical research has severe limitations, it usually carries out general relationship analysis using mainly single end or quasi to sided sampling and classic statistical constructs. Design/methodology/approach -We tested the following hypothesis: In a business relationship characterized by mutually high levels of trustworthiness perceived by each counterpart, the willingness to be involved in risky situations is higher than in relationships in which actors do not mutually believe that their partners are highly trustworthy. Mutually high levels of trustworthiness can act as a governance mechanism and, in such cases, trust appears in the relationship. In order to overcome the methodological shortcomings mentioned we designed and carried out a survey based empirical research that was highly situational, applied dyadic operationalization, pairwise sampling and dyadic data analysis -a special statistical approach and toolset developed by psychologists and used to analyze interdependencies in relationships. The dyadic, situational analysis of trust is typical in case based qualitative programs and in experimental economics but not in survey based empirical researches. Pairwise sampling has already been applied, but according to our best knowledge dyadic data analyses has not been applied in business research. Findings -Empirical results back the hypothesis and they affirm the importance of dyadic operationalization and both situational and dyadic analysis. Research limitations/implications -We think our main contribution is methodological and theoretical, since the paper gives a structured overview on the methodological challenges in analyzing mutuality in trust but also in other relational attributes. The paper not only makes these methodological problems explicit but also offer a potential solution to overcome some of their limitations. Originality/value -Despite extensive literature on trust in business relationships key methodological problems have not been discussed in details. The suggested methodological solution's applicability and usefulness is also discussed.

The challenge of researching dyadic phenomena – the comparison of dyadic data analysis and traditional statistical methods*

“…This article will not cover the economic theoretical background of the study; it can be found in and Gelei-Dobos's [2016] article. Still, it is important that the hypothesis of our study was the following: When the level of trustworthiness between the partners is mutually strong in a given business relationship, then it is true for that business relationship that high-risk actions occur (and are carried out).…”

“…Based on these, Table 1 summarises the present methodological profile. Zineldin-Jonsson [2000] x -x x Handfield-Bechtel [2002] x -x x Brashear et al [2003] x -x x Dyer-Chu [2003] x -x x Farrelly-Quester [2003] x -x x Izquierdo-Cillán [2004 ] x -x x Kwon-Suh [2004] x -x x Ryssel-Ritter-Gemünden [2004] x -x x Gounaris [2003] x -x x Leung et al [2005] x -x x Svensson [2005] x -x x Barnes-Naudé-Michell [2005] x -x x Ulaga-Eggert [2006] x -x x Svensson [2006] x -x x x Zhao-Cavusgil [2006] x -x x Caceres-Paparoidamis [2007] x -x x Eriksson-Laan [2007] x -x x Kingshott-Pecotich [2007] x -x x Liu-Luo-Liu [2009] x -x x Nielsen-Nielsen [2009] x -x x Panayides-Lun [2009] x -x x Yeung et al [2009] x -x x Wagner-Eggert-Lindemann [2010] x -x x Davis et al [2011] x -x x Jiang-Henneberg-Naudé [2012] x -x x Source: Gelei-Dobos [2016] p. 672.…”

Features of supplier management and its mechanisms – insights in Hungarian practice: how to enhance the effectiveness of procurement procedures?

“…Trust means the dimension to which extent parties of the given relationship perceive one another to be credible and benevolent partner (Ganesan, 1994). Therefore, trust is undoubtedly an important variable in governing the interactional dynamics (Andersen & Kumar, 2006;Gelei & Dobos, 2016).…”