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The importance of trust vis‐à‐vis reliance in business relationships: some international findings

The importance of trust vis‐à‐vis reliance in business relationships: some international findings Purpose – The purpose of this paper is to investigate the levels of trust and reliance in different international business markets. The paper aims to obtain empirical evidence regarding the importance of relational aspects (trust) vis‐à‐vis organisational ones (reliance) for building long‐term business relationships. Design/methodology/approach – This is an exploratory study to examine trust and reliance in the manufacturing and construction industries of four countries: UK, India, Pakistan, and Poland. Statistical analysis is based on a data sample of 501 responses collected through a survey of buying and selling relationships. Findings – Although varying across countries, stable relationships with high levels of both trust and reliance exist widely in business markets. Exclusively trust‐based business relationships, i.e. those which are mainly driven by individual‐level aspects, are very rare. However, both trust and reliance are significant for building relationships with long‐term perspectives. Practical implications – Managers in firms who want to build advantageous and sustainable business relationships need to be able to discern the difference between trust in people on the one hand, and reliance on the partner firms on the other. This research shows that to maintain sustainable relationships, firms should not only focus their relational capabilities on enhancing reliance aspects with their business partners, but also aim to build good levels of trust in the interaction. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Marketing Review Emerald Publishing

The importance of trust vis‐à‐vis reliance in business relationships: some international findings

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Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
0265-1335
DOI
10.1108/02651331111149921
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to investigate the levels of trust and reliance in different international business markets. The paper aims to obtain empirical evidence regarding the importance of relational aspects (trust) vis‐à‐vis organisational ones (reliance) for building long‐term business relationships. Design/methodology/approach – This is an exploratory study to examine trust and reliance in the manufacturing and construction industries of four countries: UK, India, Pakistan, and Poland. Statistical analysis is based on a data sample of 501 responses collected through a survey of buying and selling relationships. Findings – Although varying across countries, stable relationships with high levels of both trust and reliance exist widely in business markets. Exclusively trust‐based business relationships, i.e. those which are mainly driven by individual‐level aspects, are very rare. However, both trust and reliance are significant for building relationships with long‐term perspectives. Practical implications – Managers in firms who want to build advantageous and sustainable business relationships need to be able to discern the difference between trust in people on the one hand, and reliance on the partner firms on the other. This research shows that to maintain sustainable relationships, firms should not only focus their relational capabilities on enhancing reliance aspects with their business partners, but also aim to build good levels of trust in the interaction.

Journal

International Marketing ReviewEmerald Publishing

Published: Jul 19, 2011

Keywords: Trust; Reliance; Business relationships; International business

References