The effect of task and partner-related interactions on trust in a cooperative relationship

Conference Theme: Innovation for and from Asian Emerging Markets / Interactive Roundtable 7 – Organizational Alliance and GovernanceThis study examines how the inherent characteristics (task and partner-related interactions) of an alliance affect the level of trust, which is deemed to be an essential component in a successful cooperative relationship. Drawing on an interaction and dynamic approach, we identify four key interactions as major antecedents to inter-firm trust. Interdependence and task conflict represent task-related interactions; monitoring and reciprocity represent partner-related interactions. While interdependence and monitoring will lead to an increase in the level of trust, task conflict and reciprocity will lead to a decrease in the level of trust. Managers must not assume a stable level of trust as continual interactions might change the situation