Document Type

Article

Publication Date

2-6-2017

Abstract

Trust in interfirm exchange has traditionally been treated as mutually held and jointly determined by the two parties in a relationship. Yet, the expectations of exchange partners can, and routinely do, differ with respect to the goals, preferences, and vulnerabilities in their shared relationship. To account for such differences in expectations, we propose a broadened conceptualization of the sources of interorganizational trust as dyadic. Viewing the sources of trust as dyadic expands the conventional focus on mutual elements to further emphasize exclusive features of an exchange relationship. To substantiate our theory, we examine a key source of interorganizational trust, exchange hazards, and assess the extent to which its effects vary as a function of (1) the locus of exchange hazards (own versus other) in the dyad, (2) the degree of power imbalance in the dyad, and (3) each party’s power position in the dyad. To assess the validity of our claims, we devise a matched dyad research design and collect identical information from both buyers and suppliers in a given exchange relationship. Based on our results, we make three unique observations consistent with the notion of dyadic sources of trust. First, the same exchange hazards have contrasting effects on trust (enhancing versus diminishing) across the dyad. Second, the degree of power imbalance has opposing effects across the dyad. Third, the relative significance of partners’ exchange hazards varies based on their respective power positions.

Comments

This is a pre-copy-editing, author-produced PDF of an article accepted for publication in Organization Science in 2017 following peer review. The definitive publisher-authenticated version is available online at DOI:10.1287/orsc.2016.1102.

orsc.2016.1102-sm.pdf (158 kB)
Survey Measures

Peer Reviewed

1

Copyright

Informs

Share

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.