IDEAS home Printed from https://ideas.repec.org/a/pal/abaman/v16y2017i3d10.1057_s41291-017-0019-1.html
   My bibliography  Save this article

Inter-organizational governance and trilateral trust building: a case study of crowdsourcing-based open innovation in China

Author

Listed:
  • Wenbo Guo

    (Xi’an Jiaotong University)

  • Jing Betty Feng

    (Farmingdale State College (SUNY))

  • Brad McKenna

    (University of East Anglia)

  • Pengzhu Zhang

    (Shanghai Jiaotong University)

Abstract

In a case study of a Chinese crowdsourcing intermediary, we explore the impact of inter-organizational governance on trilateral trust-building. We show that formal control and relational governance mechanisms are essential for swift and knowledge-based trust in R&D crowdsourcing. The case also indicates that Chinese businesses continue to use guanxi (informal personal connections) as a relational and contingent mechanism to maintain affect-based trust, but guanxi is shown to inhibit the growth of Internet-based crowdsourcing for open innovation in China.

Suggested Citation

  • Wenbo Guo & Jing Betty Feng & Brad McKenna & Pengzhu Zhang, 2017. "Inter-organizational governance and trilateral trust building: a case study of crowdsourcing-based open innovation in China," Asian Business & Management, Palgrave Macmillan, vol. 16(3), pages 187-207, July.
    • Handle: RePEc:pal:abaman:v:16:y:2017:i:3:d:10.1057_s41291-017-0019-1
    DOI: 10.1057/s41291-017-0019-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41291-017-0019-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41291-017-0019-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gefen, David & Straub, Detmar W., 2004. "Consumer trust in B2C e-Commerce and the importance of social presence: experiments in e-Products and e-Services," Omega, Elsevier, vol. 32(6), pages 407-424, December.
    2. Constantine S Katsikeas & Dionysis Skarmeas & Daniel C Bello, 2009. "Developing successful trust-based international exchange relationships," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(1), pages 132-155, January.
    3. Howells, Jeremy, 2006. "Intermediation and the role of intermediaries in innovation," Research Policy, Elsevier, vol. 35(5), pages 715-728, June.
    4. Zhang, Jianjun & Keh, Hean Tat, 2010. "Interorganizational Exchanges in China: Organizational Forms and Governance Mechanisms," Management and Organization Review, Cambridge University Press, vol. 6(1), pages 123-147, March.
    5. George P. Huber & Danial J. Power, 1985. "Retrospective reports of strategic‐level managers: Guidelines for increasing their accuracy," Strategic Management Journal, Wiley Blackwell, vol. 6(2), pages 171-180, April.
    6. Lee, Yikuan & Cavusgil, S. Tamer, 2006. "Enhancing alliance performance: The effects of contractual-based versus relational-based governance," Journal of Business Research, Elsevier, vol. 59(8), pages 896-905, August.
    7. Akbar Zaheer & Bill McEvily & Vincenzo Perrone, 1998. "Does Trust Matter? Exploring the Effects of Interorganizational and Interpersonal Trust on Performance," Organization Science, INFORMS, vol. 9(2), pages 141-159, April.
    8. Herbert W. Kee & Robert E. Knox, 1970. "Conceptual and methodological considerations in the study of trust and suspicion," Journal of Conflict Resolution, Peace Science Society (International), vol. 14(3), pages 357-366, September.
    9. Dovev Lavie & Pamela R. Haunschild & Poonam Khanna, 2012. "Organizational differences, relational mechanisms, and alliance performance," Strategic Management Journal, Wiley Blackwell, vol. 33(13), pages 1453-1479, December.
    10. Ulset, Svein, 1996. "R&D outsourcing and contractual governance: An empirical study of commercial R&D projects," Journal of Economic Behavior & Organization, Elsevier, vol. 30(1), pages 63-82, July.
    11. Mary C. Lacity & Leslie P. Willcocks, 2009. "Information Systems and Outsourcing," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-59483-8, October.
    12. Seung Ho Park & Yadong Luo, 2001. "Guanxi and organizational dynamics: organizational networking in Chinese firms," Strategic Management Journal, Wiley Blackwell, vol. 22(5), pages 455-477, May.
    13. Roy Y J Chua & Michael W Morris & Paul Ingram, 2009. "Guanxi vs networking: Distinctive configurations of affect- and cognition-based trust in the networks of Chinese vs American managers," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(3), pages 490-508, April.
    14. Bill McEvily & Vincenzo Perrone & Akbar Zaheer, 2003. "Trust as an Organizing Principle," Organization Science, INFORMS, vol. 14(1), pages 91-103, February.
    15. Vining, Aidan & Globerman, steven, 1999. "A conceptual framework for understanding the outsourcing decision," European Management Journal, Elsevier, vol. 17(6), pages 645-654, December.
    16. Chao C. Chen & Xiao-Ping Chen & Shengsheng Huang, 2013. "Chinese Guanxi: An Integrative Review and New Directions for Future Research. 中国人的关系: 综合文献回顾及未来研究方向," Management and Organization Review, The International Association for Chinese Management Research, vol. 9(1), pages 167-207, March.
    17. Christian Bjørnskov, 2007. "Determinants of generalized trust: A cross-country comparison," Public Choice, Springer, vol. 130(1), pages 1-21, January.
    18. Leslie P. Willcocks & Mary C. Lacity, 2009. "The Practice of Outsourcing," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-24084-1, October.
    19. Francesca Cabiddu & Manuel Castriotta & Maria Chiara Di Guardo & Paola Floreddu, 2013. "Open Innovation and Crowdsourcing Communities Design: A Cross Case Analysis," Lecture Notes in Information Systems and Organization, in: Richard Baskerville & Marco De Marco & Paolo Spagnoletti (ed.), Designing Organizational Systems, edition 127, pages 143-155, Springer.
    20. Lenard Huff & Lane Kelley, 2003. "Levels of Organizational Trust in Individualist Versus Collectivist Societies: A Seven-Nation Study," Organization Science, INFORMS, vol. 14(1), pages 81-90, February.
    21. Akbar Zaheer & N. Venkatraman, 1995. "Relational governance as an interorganizational strategy: An empirical test of the role of trust in economic exchange," Strategic Management Journal, Wiley Blackwell, vol. 16(5), pages 373-392.
    22. L. J. Bourgeois, III & Kathleen M. Eisenhardt, 1988. "Strategic Decision Processes in High Velocity Environments: Four Cases in the Microcomputer Industry," Management Science, INFORMS, vol. 34(7), pages 816-835, July.
    23. Paul A. Pavlou & David Gefen, 2004. "Building Effective Online Marketplaces with Institution-Based Trust," Information Systems Research, INFORMS, vol. 15(1), pages 37-59, March.
    24. Christian Terwiesch & Yi Xu, 2008. "Innovation Contests, Open Innovation, and Multiagent Problem Solving," Management Science, INFORMS, vol. 54(9), pages 1529-1543, September.
    25. Chen, Chao C. & Chen, Xiao-Ping & Huang, Shengsheng, 2013. "Chinese Guanxi: An Integrative Review and New Directions for Future Research," Management and Organization Review, Cambridge University Press, vol. 9(1), pages 167-207, March.
    26. Katherine J. Stewart, 2003. "Trust Transfer on the World Wide Web," Organization Science, INFORMS, vol. 14(1), pages 5-17, February.
    27. Paul R. Carlile, 2002. "A Pragmatic View of Knowledge and Boundaries: Boundary Objects in New Product Development," Organization Science, INFORMS, vol. 13(4), pages 442-455, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xu, Hui & Wu, Yang & Hamari, Juho, 2022. "What determines the successfulness of a crowdsourcing campaign: A study on the relationships between indicators of trustworthiness, popularity, and success," Journal of Business Research, Elsevier, vol. 139(C), pages 484-495.
    2. Fang Jia & Zhilin Yang, 2021. "Perceptual difference of dependence and trust in marketing channel: reconsideration of dependence measurement," Asian Business & Management, Palgrave Macmillan, vol. 20(1), pages 78-104, February.
    3. Seung Min Lee & Sang Yong Kim & Shijin Yoo & Tae Ho Song, 2021. "The cross-buying effect in a multi-vendor loyalty program in Korea," Asian Business & Management, Palgrave Macmillan, vol. 20(3), pages 339-369, July.
    4. Li Wang & Yuan Yang & Yishuai Li, 2021. "Extending lead-user theory to a virtual brand community: the roles of flow experience and trust," Asian Business & Management, Palgrave Macmillan, vol. 20(5), pages 618-643, November.
    5. Lutao Ning & Dylan Sutherland & Xiaolan Fu, 2017. "Local context and innovation in China," Asian Business & Management, Palgrave Macmillan, vol. 16(3), pages 117-129, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Han, Shaojie & Su, Jingqin & Lyu, Yibo & Liu, Qing, 2022. "How do business incubators govern incubation relationships with different new ventures?," Technovation, Elsevier, vol. 116(C).
    2. Lee, Liane W.Y. & Tang, Yiming & Yip, Leslie S.C. & Sharma, Piyush, 2018. "Managing customer relationships in the emerging markets – guanxi as a driver of Chinese customer loyalty," Journal of Business Research, Elsevier, vol. 86(C), pages 356-365.
    3. Yang, Jie & Ma, Jieqiong & Zhang, Yong & Hong, JungHwa, 2018. "With whom should you have dinner? A multidimensional framework for understanding political ties in China," Business Horizons, Elsevier, vol. 61(6), pages 891-898.
    4. Hongjuan Zhang & Rong Han & Liang Wang & Runhui Lin, 2021. "Social capital in China: a systematic literature review," Asian Business & Management, Palgrave Macmillan, vol. 20(1), pages 32-77, February.
    5. Hongjuan Zhang & Rong Han & Liang Wang & Runhui Lin, 0. "Social capital in China: a systematic literature review," Asian Business & Management, Palgrave Macmillan, vol. 0, pages 1-46.
    6. Carole Couper & A. Rebecca Reuber & Shameen Prashantham, 2020. "Lost that lovin’ feeling: The erosion of trust between small, high-distance partners," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(3), pages 326-352, April.
    7. Boris Bauke & Thorsten Semrau & Zheng Han, 2016. "Relational trust and new ventures’ performance: the moderating impact of national-level institutional weakness," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 1007-1024, December.
    8. Lu Shen & Kevin Zheng Zhou & Chuang Zhang, 2022. "Is Interpersonal Guanxi Beneficial in Fostering Interfirm Trust? The Contingent Effect of Institutional- and Individual-Level Characteristics," Journal of Business Ethics, Springer, vol. 176(3), pages 575-592, March.
    9. Capaldo, Antonio & Giannoccaro, Ilaria, 2015. "How does trust affect performance in the supply chain? The moderating role of interdependence," International Journal of Production Economics, Elsevier, vol. 166(C), pages 36-49.
    10. Abodohoui, Alexis & Su, Zhan, 2020. "Influence of Chinese managerial soft power on African skills development," International Business Review, Elsevier, vol. 29(5).
    11. Rekha Krishnan & Inge Geyskens & Jan-Benedict E. M. Steenkamp, 2016. "The effectiveness of contractual and trust-based governance in strategic alliances under behavioral and environmental uncertainty," Strategic Management Journal, Wiley Blackwell, vol. 37(12), pages 2521-2542, December.
    12. Fang, F., 2019. "When performance shortfall arises, contract or trust? A multi-method study of the impact of contractual and relational governances on performance in public – private partnerships," Other publications TiSEM 473840ee-6945-4a93-9326-5, Tilburg University, School of Economics and Management.
    13. Starr, Richard G. & Zhu, Andrew Q. & Frethey-Bentham, Catherine & Brodie, Roderick J., 2020. "Peer-to-peer interactions in the sharing economy: Exploring the role of reciprocity within a Chinese social network," Australasian marketing journal, Elsevier, vol. 28(3), pages 67-80.
    14. Verhagen, T., 2008. "Investigating the impact of C2C electronic marketplace quality on trust," Serie Research Memoranda 0008, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    15. Joerg Bueechl & Markus Pudelko & Nicole Gillespie, 2023. "Do Chinese subordinates trust their German supervisors? A model of inter-cultural trust development," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(5), pages 768-796, July.
    16. Wyrwich, Michael & Steinberg, Philip J. & Noseleit, Florian & de Faria, Pedro, 2022. "Is open innovation imprinted on new ventures? The cooperation-inhibiting legacy of authoritarian regimes," Research Policy, Elsevier, vol. 51(1).
    17. Ben Krishna & Satish Krishnan & M. P. Sebastian, 2023. "Examining the Relationship between National Cybersecurity Commitment, Culture, and Digital Payment Usage: An Institutional Trust Theory Perspective," Information Systems Frontiers, Springer, vol. 25(5), pages 1713-1741, October.
    18. Chu, Zhaofang & Wang, Qiang & Lai, Fujun & Collins, Brian J., 2019. "Managing interdependence: Using Guanxi to cope with supply chain dependency," Journal of Business Research, Elsevier, vol. 103(C), pages 620-631.
    19. Chu, Zhaofang & Feng, Bo & Lai, Fujun, 2018. "Logistics service innovation by third party logistics providers in China: Aligning guanxi and organizational structure," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 291-307.
    20. Thorgren, Sara & Wincent, Joakim & Eriksson, Jessica, 2011. "Too small or too large to trust your partners in multipartner alliances? The role of effort in initiating generalized exchanges," Scandinavian Journal of Management, Elsevier, vol. 27(1), pages 99-112, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:abaman:v:16:y:2017:i:3:d:10.1057_s41291-017-0019-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.