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Under a cloud of suspicion: trust, distrust, and their interactive effect in interorganizational contracting

Year: 2011

Type: article

Abstract: Although considerable research has examined the role of trust in interorganizational relationship (IOR) contracting, scholars have devoted less attention to how trust and distrust jointly influence this process. We propose and test a model wherein trust, based on partner reliability, is constrained to the IOR exchange context where it develops and does not generalize to other contexts. Distrust, rooted in value incongruence, more readily generalizes across exchange contexts. Results support these predictions. In addition, our analysis shows that trust and distrust combine such that managers decrease their preferences for highly specific focal‐context contracts only when in‐context trust is high and distrust is low. We discuss how these findings may provide a more nuanced understanding of the relationship between trust‐based and contract‐based IOR governance. Copyright © 2011 John Wiley & Sons, Ltd.

Source: Strategic Management Journal

DOI: 10.1002/smj.974

Authors: Brian L. Connelly, Toyah Miller, Cynthia E. Devers

Institutions: Auburn University, Indiana University Bloomington, Indiana University, Tulane University

Language: English

Topic: Outsourcing and Supply Chain Management

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W1965803262

FWCI: 7.134

Cites: 93

Cited by: 113

Related to: 10