When can you trust “trust”? Calculative trust, relational trust, and supplier performance

2015 ◽  
Vol 37 (4) ◽  
pp. 724-741 ◽  
Author(s):  
Laura Poppo ◽  
Kevin Zheng Zhou ◽  
Julie J. Li
Keyword(s):  
Relational Trust ◽  
Supplier Performance ◽  
Calculative Trust

The Origins of Trust Asymmetry in International Relationships: An Institutional View

2020 ◽  
Vol 28 (2) ◽  
pp. 81-101
Author(s):  
Mengyang Wang ◽  
Qiyuan Zhang ◽  
Kevin Zheng Zhou
Keyword(s):  
Relationship Marketing ◽  
Institutional Distance ◽  
Relational Trust ◽  
Supplier Relationships ◽  
Cross Border ◽  
Exchange Performance ◽  
Different Types ◽  
Institutional Origins ◽  
Institutional View ◽  
Calculative Trust

Trust is key to relationship marketing. Although trust is bilateral, studies on the dispersion of trust among exchange parties remain limited, leaving the antecedents and outcomes of trust asymmetry largely underexplored. To fill the gaps, this study empirically examines the effects of different types of trust asymmetry on exchange performance and then investigates the institutional origins of trust asymmetry in international interfirm exchanges. Drawing on a survey of 134 international buyer–supplier relationships in China, the study finds that both calculative trust asymmetry and relational trust asymmetry have negative influences on exchange performance. The study also finds that formal institutional distance constrains calculative trust asymmetry and informal institutional distance increases relational trust asymmetry. Moreover, prior interactions and expectations of continuity significantly moderate the effects of formal and informal institutional distance. This study advances trust studies in cross-border settings.

Trust and the intent to cooperate in energy performance contracting for public buildings in China

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Weiping Jiang ◽  
Xianbo Zhao
Keyword(s):  
Structural Equation ◽  
Energy Performance ◽  
Relational Trust ◽  
Equation Modeling ◽  
Content Type ◽  
Performance Contracting ◽  
Positive Effects ◽  
Successful Execution ◽  
Energy Performance Contracting ◽  
Calculative Trust

Purpose The purpose of this paper is to explore the key factors in generating trust, and the effects of trust on the intention to cooperate in energy performance contracting (EPC), from the perspective of energy saving companies (ESCOs). Design/methodology/approach A questionnaire survey was undertaken to collect the data from the experienced project managers in ESCOs. Structural equation modeling was used to test the hypotheses. Findings The results revealed that competence, integrity, communication, reciprocity and contract had positive effects on calculative trust and relational trust. Both calculative trust and relational trust, in turn, were found to have positive effects on the intention to cooperate. Research limitations/implications The conclusions are derived from the Chinese cultural background and may apply to a certain geographical scope. In addition, this study focused on the perspective of ESCOs but did not consider that of facility owners. Practical implications This research would supply guidance for facility owners or users to cultivate trust from ESCOs and achieve cooperation in EPC. Originality/value Most of the existing studies have focused on the perspective of facility owners while few have attempted to investigate the perspective of ESCOs. This study contributes to the knowledge body relating to EPC by investigating the relationship between trust and the intention to cooperate from the perspective of ESCOs. In addition, most EPC studies recognized trust as a condition for the successful execution of EPC projects but failed to consider the role of trust in setting up the cooperation relationship prior to project execution.

Calculative Trust and Interfirm Contracts

2020 ◽  
Vol 66 (11) ◽  
pp. 5465-5484 ◽  
Author(s):  
Anjana Susarla ◽  
Martin Holzhacker ◽  
Ranjani Krishnan
Keyword(s):  
Information Technology ◽  
Past Research ◽  
Relational Trust ◽  
Control Instrument ◽  
Fixed Price ◽  
Cost Inefficiency ◽  
Future Potential ◽  
Past Experiences ◽  
Outsourcing Contracts ◽  
Calculative Trust

Interfirm contracts are plagued by opportunism arising from exchange hazards that increase the seller’s gains from holdup in fixed price contracts. These exchange hazards are higher when the seller can engage in unverifiable deliberate obfuscation. Although cost-plus contracts reduce holdup losses, they suffer from cost inefficiency. Past research has underscored the importance of trust as a control instrument to mitigate losses from exchange hazards, especially social relational trust that develops from past experiences. However, trust can also be calculative when it develops from the expectation of future economic gains to the buyer-seller dyad. We identify two dyadic mechanisms that generate calculative trust and curtail the likelihood of cost-inefficient behavior in cost-plus contracts. These mechanisms include future potential and bilateral reputation capital for cost containment. Analysis using probit estimations on 149 information technology outsourcing contracts for the period 1998 to 2005 suggests that calculative trust increases the likelihood of cost-plus contracts. Thus, calculative trust can mitigate inefficiencies in interfirm contracts. This paper was accepted by Shiva Rajgopal, accounting.

Boundary conditions for the emergence of relational trust among exporters and importers

2018 ◽  
Vol 28 (3/4) ◽  
pp. 358-372 ◽  
Author(s):  
Semih Ceyhan ◽  
Ismail Cagri Dogan ◽  
Mehmet Yildiz ◽  
Mehmet Barca
Keyword(s):  
Boundary Conditions ◽  
Relational Trust ◽  
Cultural Barriers ◽  
Opportunistic Behavior ◽  
Monitoring And Control ◽  
Structured Interviews ◽  
Organizational Relationships ◽  
Content Type ◽  
Top Managers ◽  
Calculative Trust

Purpose This study looks to the answer of whether importers and exporters can develop relational trust and minimize the monitoring and control costs used to prevent opportunistic behavior in a trust relationship. Despite increasing scholarly interest in calculative and relational trust, the boundary conditions affecting the transformation of calculative trust into relational trust remain unaddressed. In response, this study aims to investigate the boundary conditions for the emergence of relational trust in inter-organizational relationships between Chinese exporters and Turkish importers. Design/methodology/approach Data were collected from Turkish SMEs that import from China. To measure trust between parties, semi-structured interviews with top managers and/or decision-making company owners were conducted. Interview questions covered three categories: antecedents of trust, ways of developing trust and outcomes of trust. Findings Results indicated that inter-organizational relationships between Chinese and Turkish firms lack relational-based trust. Most trade transactions between two parties are based on calculations of profit/loss, and Turkish firms use intermediary mechanisms to overcome lack of trust in this environment. The most important boundary conditions for the emergence of relational trust are behavioral uncertainty, the opportunistic behavior of Chinese suppliers and language and cultural barriers. Originality/value This study contributes to the existing literature by addressing the hitherto unaddressed question of what the boundary conditions are for the transformation of calculative trust into relational trust.

Introduction

2018 ◽  
Author(s):  
Nicholas J. Wheeler
Keyword(s):  
Case Studies ◽  
Final Section ◽  
Definition Of ◽  
Calculative Trust

This Introduction to the book does three things. First, it introduces the concept of trust and develops a definition of trust as the ‘expectation of no harm in contexts where betrayal is always a possibility’. Next, it identities two conceptions of trust that guide the book, ‘calculative trust’ and ‘trust as suspension’, which provide very different explanations for how actors form expectations that another will be trustworthy. It then shows how trust as suspension opens up a new theory of accurate signal interpretation and demonstrates how this theory is superior to costly signalling-based theories of accurate signal interpretation. The final section of the Introduction sets out the rationale for the case studies and the key assumptions.

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