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An integrated perspective of social exchange theory and transaction cost approach on the antecedents of trust in international joint ventures
University of Sharjah, United Arab Emirates.
Linnaeus University, School of Business and Economics, Department of Marketing.
2017 (English)In: International Business Review, ISSN 0969-5931, E-ISSN 1873-6149, Vol. 26, no 3, 491-501 p.Article in journal (Refereed) Published
Abstract [en]

This study investigates the antecedents of trust in International Joint Ventures (IJVs). Building on social exchange theory (SET) and transaction cost theory (TCT), we develop an integrated framework in which trust development requires two sets of antecedents: (1) social antecedents (prior alliance experience with partner, partner’s cultural sensitivity and reputation, inter-partner communication, expected longevity of the IJVs), and (2) structural antecedents (interdependence, ownership share, resource complementary). The developed framework is tested using web-survey data collected from 89 IJVs established by Nordic firms in Asia, Europe and America. Empirical data analysis based on structural equation modelling suggests that a partner’s cultural sensitivity and reputation, inter-partner communication, and expected longevity are the social antecedents from SET that enhance trust. From TCA, the structural antecedent of resource complementary develops trust, while balanced interdepen- dence and balanced ownership are unrelated to trust. These findings have important implications for managers planning to form and manage IJVs.

Place, publisher, year, edition, pages
Elsevier, 2017. Vol. 26, no 3, 491-501 p.
Keyword [en]
Trust, Social antecedent, Structural antecedent, International joint venture, Social exchange theory, Transaction cost aproach
National Category
Economics and Business
Research subject
Economy, Business administration
Identifiers
URN: urn:nbn:se:lnu:diva-61939DOI: 10.1016/j.ibusrev.2016.10.008ISI: 000401389900007OAI: oai:DiVA.org:lnu-61939DiVA: diva2:1085355
Available from: 2017-03-28 Created: 2017-03-28 Last updated: 2017-07-19Bibliographically approved

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf