TY - JOUR
T1 - Does Trust Matter? Exploring the Effects of Interorganizational and Interpersonal Trust on Performance
AU - Zaheer, Akbar
AU - McEvily, Bill
AU - Perrone, Vincenzo
PY - 1998/1/1
Y1 - 1998/1/1
N2 - A conceptual challenge in exploring the role of trust in interorganizational exchange is translating an inherently individual-level concept - trust - to the organizational-level outcome of performance. We define interpersonal and interorganizational trust as distinct constructs and draw on theories of interorganizational relations to derive a model of exchange performance. Specifically, we investigate the role of trust in interfirm exchange at two levels of analysis and assess its effects on negotiation costs, conflict, and ultimately performance. Propositions were tested with data from a sample of 107 buyer-supplier interfirm relationships in the electrical equipment manufacturing industry using a structural equation model. The results indicate that interpersonal and interorganizational trust are related but distinct constructs, and play different roles in affecting negotiation processes and exchange performance. Further, the hypotheses linking trust to performance receive some support, although the precise nature of the link is somewhat different than initially proposed. Overall, the results show that trust in interorganizational exchange relations clearly matters.
AB - A conceptual challenge in exploring the role of trust in interorganizational exchange is translating an inherently individual-level concept - trust - to the organizational-level outcome of performance. We define interpersonal and interorganizational trust as distinct constructs and draw on theories of interorganizational relations to derive a model of exchange performance. Specifically, we investigate the role of trust in interfirm exchange at two levels of analysis and assess its effects on negotiation costs, conflict, and ultimately performance. Propositions were tested with data from a sample of 107 buyer-supplier interfirm relationships in the electrical equipment manufacturing industry using a structural equation model. The results indicate that interpersonal and interorganizational trust are related but distinct constructs, and play different roles in affecting negotiation processes and exchange performance. Further, the hypotheses linking trust to performance receive some support, although the precise nature of the link is somewhat different than initially proposed. Overall, the results show that trust in interorganizational exchange relations clearly matters.
KW - Interfirm Relations
KW - Interorganizational Trust
KW - Relational Governance
UR - http://www.scopus.com/inward/record.url?scp=0032391619&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0032391619&partnerID=8YFLogxK
U2 - 10.1287/orsc.9.2.141
DO - 10.1287/orsc.9.2.141
M3 - Article
AN - SCOPUS:0032391619
SN - 1047-7039
VL - 9
SP - 141
EP - 159
JO - Organization Science
JF - Organization Science
IS - 2
ER -