Friday, February 22, 2013

Trust Between International Joint Venture Partners: Effects of Home Countries


ERTUG Gokhan, CUYPERS Ilya, NOORDERHAVEN Niels, BENSAOU M. Ben
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Journal of International Business Studies 44, 3 (2013) 263-282

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.