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

Antecedents of Interorganizational Trust: Joint Decision‐Making, Cultural Adaptation, and... 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Asia Business Studies Emerald Publishing

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

Journal of Asia Business Studies , Volume 3 (2): 13 – May 21, 2009

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Publisher
Emerald Publishing
Copyright
Copyright © 2009 Emerald Group Publishing Limited. All rights reserved.
ISSN
1558-7894
DOI
10.1108/15587890980001513
Publisher site
See Article on Publisher Site

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.

Journal

Journal of Asia Business StudiesEmerald Publishing

Published: May 21, 2009

Keywords: Interorganizational trust; Joint decision‐making; Cultural adaptation; Bargaining power; Justice

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