Abstract

This study examines the determinants of inter-organizational trust by using survey data from over 1000 suppliers in the automotive industry. Drawing on transaction cost economics, game theory and sociological exchange theory, we define trust and derive a model of its determinants. Regression analysis results indicate that determinants of trust are different from determinants of opportunism. US–Japanese differences are found in three respects: (i) the way trust is conceptualised by suppliers is more complex in Japan than in the US; (ii) the level of trust is higher in Japan than in the US; and (iii) the factors facilitating trust and those attenuating opportunism differ in the US and Japan.

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