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Trust between international joint venture partners: Effects of home countries

Author

Listed:
  • Gokhan Ertug

    (Lee Kong Chian School of Business, Singapore Management University, Singapore, Singapore)

  • Ilya R P Cuypers

    (Lee Kong Chian School of Business, Singapore Management University, Singapore, Singapore)

  • Niels G Noorderhaven

    (Center for Innovation Research, Tilburg University, Tilburg, The Netherlands)

  • Ben M Bensaou

    (INSEAD, Fontainebleau, France)

Abstract

Trust is an important factor in interorganizational relations. Interorganizational trust in cross-border relationships is likely to be influenced by the home countries of both partners. Using data on 165 international joint ventures (IJVs), we show that the perceived trustworthiness of an IJV partner is influenced by the general propensity to trust in the trustor's home country. Moreover, the trustworthiness perceived by a focal parent firm is also affected by the home country of the other IJV partner. This second effect is mitigated by experience between the partners.

Suggested Citation

  • Gokhan Ertug & Ilya R P Cuypers & Niels G Noorderhaven & Ben M Bensaou, 2013. "Trust between international joint venture partners: Effects of home countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(3), pages 263-282, April.
    • Handle: RePEc:pal:jintbs:v:44:y:2013:i:3:p:263-282
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