The strategic implications of trust for interorganizational exchange relations under asymmetric dependence
Andaleeb, Syed Saad
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https://hdl.handle.net/2142/21409
Description
Title
The strategic implications of trust for interorganizational exchange relations under asymmetric dependence
Author(s)
Andaleeb, Syed Saad
Issue Date
1989
Department of Study
Business Administration
Discipline
Business Administration
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
Business Administration, Marketing
Language
eng
Abstract
The extent of trust of one organizational entity in another seems to have important behavioral implications for long run interactions and transactions. In the context of channel relationships and exchange processes, however, the role of trust is understood very little. In this study it was posited that trust or its absence would have a major influence on exchange relationships characterized by cooperation and formalization. It was also posited that trust would have a strong effect on bargaining stance and perceived stability in a relationship. Furthermore, because of inherent interdependencies in exchange contexts, it was hypothesized that dependence and trust would have interactive influences on the dependent variables. This study also endeavored to examine the degree of attitude change when there was a reversal in one's initial perceptions of trust in another party. Specifically, it was posited that the impact on one's trust would be greater if the exchange partner was initially perceived as trustworthy and if the partner subsequently demonstrated untrustworthy behavior than vice versa.
An experimental research methodology was adopted to test the hypotheses. Data were collected from 120 subjects in a behavioral lab at the University of Illinois. The data were analysed using a 2 x 2 factorial design and a split-plot factorial design. The results indicated that the construct trust had a relatively greater impact on the dependent variables than the construct dependence. This finding has significant implications for ongoing exchange relationships. In an era when joint ventures, strategic alliances, networking, and other forms of cooperative business arrangements are beginning to become prominent, trust is likely to play a very vital role in enabling partners in exchange to strengthen their relationships and meet the challenges of a competitive and dynamic environment more effectively. Consequently, the need to understand the construct better and explore its ramifications for exchange relationships has been underscored.
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