Effects of trust and governance on relational risk

Article Abstract:

In transaction cost economics, trust has been treated as redundant or even misleading. This study tested the effects of governance and trust on the risk perceived by agents of firms in alliances. Two dimensions of relational risk were assessed: the probability that something will go wrong and the size of the loss incurred when it does. Hypotheses, tested with survey data on the customer relations of ten suppliers of electrical/electronic components, were well collaborated, with trust-related variables as well as others found to have significant effects. (Reprinted by permission of the publisher.)

Risk management, Strategic alliances (Business), Trust (Psychology)

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Two's company, three's a crowd? Triads in cooperative-competitive networks

Article Abstract:

The constructs clustering and countering as potential drivers of triadic structure are developed and combined with the recently developed p(super *) network model to demonstrate the value and feasibility of triadic analysis. Exploratory analysis of data from the global steel industry revealed firms' tendency to form transitive triads, in which three firms all have direct ties with each other, especially within blocks defined by geography or technology.

Blast furnaces and steel mills, Steel industry, Organizational research

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When does trust matter to alliance performance?

Article Abstract:

The way in which trust has different effects on alliance performance that depends on the levels of behavioral and environmental uncertainty present is examined. The results showed that partners must focus on developing interorganizational trust wherein potential improvement in alliance performance justifies the effort, which in turn depends on the type of uncertainty that a person faces.

Nondeposit trust facilities, Trust Companies, Trust, Fiduciary, and Custody Activities

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