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It’s all about Trust and Loyalty: Partner Selection Mechanisms in Tourism Networks

Author

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  • Pesämaa, Ossi
  • Örtqvist, Daniel
  • Hair Jr, Josph F

Abstract

Does expected partner or task related criteria affect how trust and loyalty is developed between tourism firms? This paper poses a model, which is developed on the assumption that well defined partner and task related partner expectations and experienced trust, should build loyalty between tourism firms. The model provides a more precise assessment for scholars, which believes that trust is related to the risk that is associated with personal relationships between two or more firms, and that risk depends on expectations that are derived from personal relationships. The model also integrates the role of experienced trust in transforming different partner selection criteria into loyalty. The contribution of the model is that it provides insights into cooperative relationships by examining the role of trust between small tourism firms when cooperation is established. Data from a sample of 96 tourism firms in the Northern U.S. is used to test the model. The findings provide implications for tourism scholars and policy-makers who are interested in developing managerial strategies that are based on personal relationships.

Suggested Citation

  • Pesämaa, Ossi & Örtqvist, Daniel & Hair Jr, Josph F, 2007. "It’s all about Trust and Loyalty: Partner Selection Mechanisms in Tourism Networks," MPRA Paper 8428, University Library of Munich, Germany, revised 2007.
    • Handle: RePEc:pra:mprapa:8428
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    File URL: https://mpra.ub.uni-muenchen.de/8428/1/MPRA_paper_8428.pdf
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    References listed on IDEAS

    as
    1. Michael Hitt & M. Tina Dacin & Edward Levitas & Jean-Luc Arregle & Anca Borza, 2000. "Partner Selection in Emerging and Developed Market Contexts : Resource-Based and Organizational Learning Perspectives," Post-Print hal-02276706, HAL.
    2. J Michael Geringer & Louis Hebert, 1991. "Measuring Performance of International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(2), pages 249-263, June.
    3. Gounaris, Spiros P., 2005. "Trust and commitment influences on customer retention: insights from business-to-business services," Journal of Business Research, Elsevier, vol. 58(2), pages 126-140, February.
    4. Mavondo, Felix T. & Rodrigo, Elaine M., 2001. "The effect of relationship dimensions on interpersonal and interorganizational commitment in organizations conducting business between Australia and China," Journal of Business Research, Elsevier, vol. 52(2), pages 111-121, May.
    5. Michael Hitt & M. Tina Dacin & Edward Levitas & Jean-Luc Arregle & Anca Borza, 2000. "Partner Selection in Emerging and Developed Market Contexts : Resource-Based and Organizational Learning Perspectives," Post-Print hal-02312691, HAL.
    6. J Michael Geringer, 1991. "Strategic Determinants of Partner Selection Criteria in International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(1), pages 41-62, March.
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    Cited by:

    1. Pesämaa, Ossi & Hair Jr, Joseph F, 2008. "Cooperative Strategies for Improving the Tourism Industry in Remote Geographic Regions: An Addition to Trust and Commitment Theory with one Key Mediating Construct," MPRA Paper 8794, University Library of Munich, Germany.
    2. Pesämaa, Ossi, 2007. "Development of relationships in interorganizational networks: studies in the tourism and construction industries," MPRA Paper 8478, University Library of Munich, Germany.

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    More about this item

    Keywords

    Loyalty; partner selection; trust; tourism; Experience stratos;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics

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