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Governments, reciprocal exchange and trust among business associates

Author

Listed:
  • Alaka N Rao

    (Graduate School of Management, University of California, Irvine, USA)

  • Jone L Pearce

    (Graduate School of Management, University of California, Irvine, USA)

  • Katherine Xin

    (China Europe International Business School (CEIBS), Shanghai, China)

Abstract

Both Pearce and Molm have conducted research in interpersonal trust. Here we apply their work to international business by deriving hypotheses from their work, some compatible, some conflicting. We test them with data from managers in China, the United States, Hong Kong and Thailand using measures from the World Bank, World Competitiveness Report, and Transparency International and managerial interviews. We find support for Pearce's arguments on the effects of governmental facilitation on managers' trust in their business partners, and for extensions of Molm's work on reciprocal exchange to international field settings. For the conflicting hypotheses, results support Pearce's arguments that the structural assurances of facilitative governments lead to higher levels of trust in business associates. Journal of International Business Studies (2005) 36, 104–118. doi:10.1057/palgrave.jibs.8400116

Suggested Citation

  • Alaka N Rao & Jone L Pearce & Katherine Xin, 2005. "Governments, reciprocal exchange and trust among business associates," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(1), pages 104-118, January.
    • Handle: RePEc:pal:jintbs:v:36:y:2005:i:1:p:104-118
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    Citations

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    Cited by:

    1. Ziliang Deng & Peter W Liesch & Zeyu Wang, 2021. "Deceptive signaling on globalized digital platforms: Institutional hypnosis and firm internationalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(6), pages 1096-1120, August.
    2. Dowling, Michael & O’Gorman, Colm & Puncheva, Petya & Vanwalleghem, Dieter, 2019. "Trust and SME attitudes towards equity financing across Europe," Journal of World Business, Elsevier, vol. 54(6), pages 1-1.
    3. Fan, Di & Li, Yi & Chen, Liang, 2017. "Configuring innovative societies: The crossvergent role of cultural and institutional varieties," Technovation, Elsevier, vol. 66, pages 43-56.
    4. Hedayati , Arshad & Rahman Sersht , Hossein, 2017. "Repairing the Organizational Trust to Maintain and Enhance Deposits in Iran," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 12(4), pages 409-432, October.
    5. Junsheng Dou & Shengxiao Li, 2013. "The succession process in Chinese family firms: A guanxi perspective," Asia Pacific Journal of Management, Springer, vol. 30(3), pages 893-917, September.
    6. Qin, Zhong, 2011. "Models of trust-sharing in Chinese private enterprises," Economic Modelling, Elsevier, vol. 28(3), pages 1017-1029, May.
    7. Bo Bernhard Nielsen & Catherine Welch & Agnieszka Chidlow & Stewart Robert Miller & Roberta Aguzzoli & Emma Gardner & Maria Karafyllia & Diletta Pegoraro, 2020. "Fifty years of methodological trends in JIBS: Why future IB research needs more triangulation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1478-1499, December.
    8. Zhang, Man & Merchant, Hemant, 2020. "A causal analysis of the role of institutions and organizational proficiencies on the innovation capability of Chinese SMEs," International Business Review, Elsevier, vol. 29(2).
    9. Ping Guo & Huimin Li & Guangmin Zhang & Yang Zhang, 2019. "Exploring Critical Variables That Affect the Policy Risk Level of Industrial Heritage Projects in China," Sustainability, MDPI, vol. 11(23), pages 1-18, December.
    10. Hutzschenreuter, Thomas & Kleindienst, Ingo & Lange, Sandra, 2014. "Added Psychic Distance Stimuli and MNE Performance," Journal of International Management, Elsevier, vol. 20(1), pages 38-54.
    11. Liu, Yen-Hung Steven & Deligonul, Seyda & Cavusgil, Erin & Chiou, Jyh-Shen, 2018. "Always trust in old friends? Effects of reciprocity in bilateral asset specificity on trust in international B2B partnerships," Journal of Business Research, Elsevier, vol. 90(C), pages 171-185.
    12. Alfred Wong & Dean Tjosvold, 2006. "Collectivist values for learning in organizational relationships in China: the role of trust and vertical coordination," Asia Pacific Journal of Management, Springer, vol. 23(3), pages 299-317, September.
    13. Michael Dowling & Colm O’gorman & Petya Puncheva-Michelotti & Dieter Vanwalleghem, 2019. "Trust and SME attitudes towards equity financing across Europe," Post-Print hal-02194484, HAL.
    14. Ho, Ly & Bai, Min & Lu, Yue & Qin, Yafeng, 2021. "The effect of corporate sustainability performance on leverage adjustments," The British Accounting Review, Elsevier, vol. 53(5).
    15. Özalp Özer & Yanchong Zheng & Yufei Ren, 2014. "Trust, Trustworthiness, and Information Sharing in Supply Chains Bridging China and the United States," Management Science, INFORMS, vol. 60(10), pages 2435-2460, October.

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