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Trust-performance relationship in international joint ventures: the moderating roles of structural mechanisms
Linnaeus University, School of Business and Economics, Department of Marketing.
University of Sharjah, United Arab Emirates.
2017 (English)In: The journal of business & industrial marketing, ISSN 0885-8624, E-ISSN 2052-1189, Vol. 32, no 7, 962-973 p.Article in journal (Refereed) Published
Abstract [en]

Purpose

This study investigates the relationship between trust and performance in international joint ventures with the moderating effects of the structural mechanisms from transaction cost approach.

Design/methodology/approach

Using web-survey data is collected from 89 IJVs of Northern European firms in Asia, Europe and America. Empirical data is analyzed with Structural Equation Modeling and estimates moderating effects of symmetric dependence, symmetric equity share and resource complementarity.

Findings

The findings offer some interesting insights for transaction cost and the social exchange theory. This study demonstrates that a symmetric equity share between IJV partners does not moderate the trust -performance relationship, while a symmetric dependence and resource complementarity between partners effect positively. Therefore, trust takes on greater importance in enhancing IJV performance under symmetric dependence and resource complementarity and symmetric equity share between IJV partners deprecates the importance of equity distribution.

Practical implications

A symmetric dependence prevents the deceit from either partner in trusting relationships. Further, a trustful relationship enhances IJV performance regardless of the equity share in IJVs. IJVs with asymmetric equity share can also be successful, provided that IJV partners develop inter-partner trust.

Originality/value

The extant research has not examined how the trust–performance relationship is contingent on structural mechanisms of IJVs that transaction cost economics deem necessary to prevent opportunistic behavior. Three structural mechanisms of symmetric dependence, symmetric equity share, and resource complementarity moderate the trust-performance relationship in IJVs.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2017. Vol. 32, no 7, 962-973 p.
National Category
Economics and Business
Research subject
Economy
Identifiers
URN: urn:nbn:se:lnu:diva-67438DOI: 10.1108/JBIM-02-2017-0025ISI: 000408646800007OAI: oai:DiVA.org:lnu-67438DiVA: diva2:1136202
Available from: 2017-08-25 Created: 2017-08-25 Last updated: 2017-09-14Bibliographically 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