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Under a cloud of suspicion: trust, distrust, and their interactive effect in interorganizational contracting

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  • Brian L. Connelly
  • Toyah Miller
  • Cynthia E. Devers

Abstract

Although considerable research has examined the role of trust in interorganizational relationship (IOR) contracting, scholars have devoted less attention to how trust and distrust jointly influence this process. We propose and test a model wherein trust, based on partner reliability, is constrained to the IOR exchange context where it develops and does not generalize to other contexts. Distrust, rooted in value incongruence, more readily generalizes across exchange contexts. Results support these predictions. In addition, our analysis shows that trust and distrust combine such that managers decrease their preferences for highly specific focal‐context contracts only when in‐context trust is high and distrust is low. We discuss how these findings may provide a more nuanced understanding of the relationship between trust‐based and contract‐based IOR governance. Copyright © 2011 John Wiley & Sons, Ltd.

Suggested Citation

  • Brian L. Connelly & Toyah Miller & Cynthia E. Devers, 2012. "Under a cloud of suspicion: trust, distrust, and their interactive effect in interorganizational contracting," Strategic Management Journal, Wiley Blackwell, vol. 33(7), pages 820-833, July.
    • Handle: RePEc:bla:stratm:v:33:y:2012:i:7:p:820-833
    DOI: 10.1002/smj.974
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    Cited by:

    1. Khalid, Saba & Ali, Tahir, 2017. "An integrated perspective of social exchange theory and transaction cost approach on the antecedents of trust in international joint ventures," International Business Review, Elsevier, vol. 26(3), pages 491-501.
    2. Adongo, Raymond & (Sam) Kim, Seongseop & Elliot, Statia, 2019. "“Give and take”: A social exchange perspective on festival stakeholder relations," Annals of Tourism Research, Elsevier, vol. 75(C), pages 42-57.
    3. Ebers, Mark & Semrau, Thorsten, 2015. "What drives the allocation of specific investments between buyer and supplier?," Journal of Business Research, Elsevier, vol. 68(2), pages 415-424.
    4. Raza-Ullah, Tatbeeq & Kostis, Angelos, 2020. "Do trust and distrust in coopetition matter to performance?," European Management Journal, Elsevier, vol. 38(3), pages 367-376.
    5. van der Valk, Wendy & Lumineau, Fabrice & Wang, Wenqian, 2019. "Research on contracting in supply chain management and related disciplines: A synthesis of scholarly recommendations and a discussion of future opportunities," Other publications TiSEM 55901a88-7fc5-4808-a47a-e, Tilburg University, School of Economics and Management.

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