inter organizational trust and the dyna
Journal of International Business Studies (2011) 42, 35–47
& 2011 Academy of International Business All rights reserved 0047-2506 www.jibs.net COMMENTARY
Inter-organizational trust and the dynamics of distrust
John Paul MacDuffie
Wharton School, University of Pennsylvania,
Philadelphia, USA
Correspondence:
JP MacDuffie, 3105 Steinberg-Dietrich Hall,
Wharton School, University of
Pennsylvania, Philadelphia, PA 19104-6370,
USA.
Tel: 215-898-2588;
Fax: 215-898-0401
Abstract
Early research on inter-organizational trust drew on theories about social ties among individuals, for example, duration of ties and amount of interaction, yet these proved inadequate to explain the diverse arrangements arising in international business. Dyer and Chu’s award-winning JIBS paper demonstrated that trust was best predicted by organizational processes that developed positive expectations of predictability, reliability, and competence, not only within national boundaries but also in cross-national relationships. This review of recent trust research building on Dyer and Chu draws attention to six themes: (1) new conceptualizations that explore identity, roles, and rules as foundations of presumptive trust at the organizational level; (2) dynamics of trust and distrust over time, how violations of trust are interpreted, and what affects ease of repair;
(3) pendulum swings in inter-organizational relationships, arising from plural governance and alternation between modes, but also resulting in the continuous coexistence of positive and negative states; (4) the impact of intra-organizational conflict and inter-organizational coalitions on the establishment and maintenance of trust; (5) the relative impact of nation-level vs organization-level differences in culture as influences on trust; and (6) whether intermediate modes of exchange in between transactional and relational modes are unstable, transitional hybrids or embody complementarities that yield both value and stability.
Journal
& 2011 Academy of International Business All rights reserved 0047-2506 www.jibs.net COMMENTARY
Inter-organizational trust and the dynamics of distrust
John Paul MacDuffie
Wharton School, University of Pennsylvania,
Philadelphia, USA
Correspondence:
JP MacDuffie, 3105 Steinberg-Dietrich Hall,
Wharton School, University of
Pennsylvania, Philadelphia, PA 19104-6370,
USA.
Tel: 215-898-2588;
Fax: 215-898-0401
Abstract
Early research on inter-organizational trust drew on theories about social ties among individuals, for example, duration of ties and amount of interaction, yet these proved inadequate to explain the diverse arrangements arising in international business. Dyer and Chu’s award-winning JIBS paper demonstrated that trust was best predicted by organizational processes that developed positive expectations of predictability, reliability, and competence, not only within national boundaries but also in cross-national relationships. This review of recent trust research building on Dyer and Chu draws attention to six themes: (1) new conceptualizations that explore identity, roles, and rules as foundations of presumptive trust at the organizational level; (2) dynamics of trust and distrust over time, how violations of trust are interpreted, and what affects ease of repair;
(3) pendulum swings in inter-organizational relationships, arising from plural governance and alternation between modes, but also resulting in the continuous coexistence of positive and negative states; (4) the impact of intra-organizational conflict and inter-organizational coalitions on the establishment and maintenance of trust; (5) the relative impact of nation-level vs organization-level differences in culture as influences on trust; and (6) whether intermediate modes of exchange in between transactional and relational modes are unstable, transitional hybrids or embody complementarities that yield both value and stability.
Journal
References: Adler, P. S., Heckscher, C., & Cummings, C. 2010. Collaborative community as an organizational design for contextual ambidexterity Bachmann, R., & Zaheer, A. (Eds). 2006. Handbook of trust research Bradach, J. L. 1997. Using the plural form in the management of restaurant chains Bradach, J. L., & Eccles, R. G. 1989. Price, authority, and trust: From ideal types to plural forms Currall, S. C., & Inkpen, A. 2002. A multilevel approach to trust in joint ventures Darley, J. M. 2004. Commitment, trust, and worker effort expenditure in organizations Dirks, K. T., Lewicki, R. J., & Zaheer, A. 2009. Repairing relationships within and between organizations: Building a Dyer, J. H., & Chu, W. 2000. The determinants of trust in supplier-automaker relationships in the U.S., Japan, and Korea. Dyer, J. H., & Chu, W. 2003. The role of trustworthiness in reducing transaction costs and improving performance: Fukuyama, F. 1995. Trust: The social virtues and the creation of prosperity Gibson, C., & Birkinshaw, J. 2004. The antecedents, consequences, and mediating role of organizational ambidexterity. Gould, S. J., & Grein, A. F. 2009. Think glocally, act glocally: A culture-centric comment on Leung, Bhagat, Buchan, Erez, and Gibson (2005). Journal of International Business Studies, 40(2): 237–254. Guille´n, M. 2001. The limits of convergence: Globalization and organizational change in Argentina, South Korea, and Spain. Gulati, R., & Sytch, M. 2008. Does familiarity breed trust? Revisiting the antecedents of trust Heide, J. B. 2003. Plural governance in industrial purchasing. Helper, S. 1991. Strategy and irreversibility in supplier relations: The case of the U.S Helper, S., & Sako, M. 1995. Supplier relations in Japan and the United States: Are they converging? Sloan Management Helper, S., MacDuffie, J.P., & Sabel, C.F. 2000. Pragmatic collaboratons: Advancing knowledge while controlling opportunism Herrigel, G., & Zeitlin, J. 2010. Inter-firm relations in global manufacturing: Disintegrated production and its globalization Huff, L., & Kelley, L. 2003. Levels of organizational trust in individualist versus collectivist societies: A seven-nation Kramer, R. M. 2006. Organizational trust: A reader. New York: Oxford University Press. Kramer, R. M., & Lewicki, R. J. 2010. Repairing and enhancing trust: Approaches to reducing organizational Lazzarini, S. G., Miller, G. J., & Zenger, T. R. 2008. Dealing with the paradox of embeddedness: The role of contracts and trust MacDuffie, J. P., & Helper, S. 1997. Creating lean suppliers: Diffusing lean production through the supply chain MacDuffie, J. P., & Helper, S. 2007. Collaboration in supply chains: With and without trust