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How much does trust really matter? Some reflections on the significance and implications of Madhok's trust-based approach

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  • Silviya Svejenova

    (Business Policy Department, ESADE Business School, Barcelona, Spain)

Abstract

Madhok's 1995 article defined and developed a trust-based perspective on the stability of international joint ventures (IJVs). Proposing a shift in focus from ownership to relationship, and from governance form to process, the article emphasised the role of trust in holding IJVs together and the importance of considering the dynamics of inter-organisational collaboration. By distinguishing between structural and social components of trust, it contributed to a more nuanced understanding of what makes inter-firm partnership durable and able to realise its value potential. This paper reviews Madhok's original ideas and highlights the influence they have had on the field of international business. It concludes with avenues for further research inspired by the article. Journal of International Business Studies (2006) 37, 12–20. doi:10.1057/palgrave.jibs.8400181

Suggested Citation

  • Silviya Svejenova, 2006. "How much does trust really matter? Some reflections on the significance and implications of Madhok's trust-based approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(1), pages 12-20, January.
    • Handle: RePEc:pal:jintbs:v:37:y:2006:i:1:p:12-20
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    Citations

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    Cited by:

    1. Freeman, Susan & Hutchings, Kate & Lazaris, Miria & Zyngier, Suzanne, 2010. "A model of rapid knowledge development: The smaller born-global firm," International Business Review, Elsevier, vol. 19(1), pages 70-84, February.
    2. Sigfusson, Thor & Harris, Simon, 2013. "Domestic market context and international entrepreneurs’ relationship portfolios," International Business Review, Elsevier, vol. 22(1), pages 243-258.
    3. Vivek, Shiri D. & Richey Jr., R. Glenn & Dalela, Vivek, 2009. "A longitudinal examination of partnership governance in offshoring: A moving target," Journal of World Business, Elsevier, vol. 44(1), pages 16-30, January.
    4. Yener Kandogan & Jens Hiller, 2018. "Alliances in international governmental organizations, regional trade agreement formation, and multinational enterprise regionalization strategy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(6), pages 729-742, August.
    5. Liu, C.-L.E., 2012. "An investigation of relationship learning in cross-border buyer–supplier relationships: The role of trust," International Business Review, Elsevier, vol. 21(3), pages 311-327.
    6. Alexander T Mohr & Jonas Puck, 2013. "Revisiting the Trust-performance Link in Strategic Alliances," Management International Review, Springer, vol. 53(2), pages 269-289, April.
    7. 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.
    8. Mia Hsiao-Wen Ho & Pervez N. Ghauri & Jorma A. Larimo, 2018. "Institutional distance and knowledge acquisition in international buyer-supplier relationships: The moderating role of trust," Asia Pacific Journal of Management, Springer, vol. 35(2), pages 427-447, June.
    9. Lin, Xiaohua & Wang, Cheng Lu, 2008. "Enforcement and performance: The role of ownership, legalism and trust in international joint ventures," Journal of World Business, Elsevier, vol. 43(3), pages 340-351, July.
    10. Shenkar Oded & Arikan Ilgaz, 2010. "Business as International Politics: Drawing Insights from Nation-State to Inter-Firm Alliances," Business and Politics, De Gruyter, vol. 11(4), pages 1-33, January.

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