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Understanding trust across cultures: an empirical investigation

Understanding trust across cultures: an empirical investigation In today’s business world, trust is an essential ingredient for business success, as it serves as a foundation for enhancing a network of positive relationships among businesses, clients, employees and stakeholders. This study aims to shed light on a deeper and more substantial understanding of trust by examining the casual association between national culture and trust.Design/methodology/approachThe study empirically investigates the extent to which cultural factors promote and constrain the level of trust using a mixed sample of 46 developed and developing countries observed over the period of 1990-2014.FindingsThe study provides new empirical evidence that trusting behavior is explained systematically by national culture. Countries with high individualistic and high long-term oriented cultures are the most favorable environment that fosters trust among people in society. In contrast, individuals from countries with the expression of high power distance and high uncertainty avoidance cultures appear to exhibit less trust in others.Practical implicationsThe study provides managerial implications, especially for managers and management consultants in a global context, regarding the cultural relevance of trust in the new and foreign environment, and the effective management of trust among culturally diverse workforces and business relationships. In addition, the study should serve as a supplemental learning material in the business and management disciplines to demonstrate the essential role of trust in the global business environment.Originality/valueThe study adds to the existing body of knowledge on trust by offering new empirical insights into how culture plays an influential role in the creation of trust. This serves as a good starting point for academic scholars and practicing professionals to further develop appropriate management strategies and execution plans for managing trust across different cultural settings. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of International Business and Strategy Emerald Publishing

Understanding trust across cultures: an empirical investigation

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
2059-6014
DOI
10.1108/ribs-12-2018-0103
Publisher site
See Article on Publisher Site

Abstract

In today’s business world, trust is an essential ingredient for business success, as it serves as a foundation for enhancing a network of positive relationships among businesses, clients, employees and stakeholders. This study aims to shed light on a deeper and more substantial understanding of trust by examining the casual association between national culture and trust.Design/methodology/approachThe study empirically investigates the extent to which cultural factors promote and constrain the level of trust using a mixed sample of 46 developed and developing countries observed over the period of 1990-2014.FindingsThe study provides new empirical evidence that trusting behavior is explained systematically by national culture. Countries with high individualistic and high long-term oriented cultures are the most favorable environment that fosters trust among people in society. In contrast, individuals from countries with the expression of high power distance and high uncertainty avoidance cultures appear to exhibit less trust in others.Practical implicationsThe study provides managerial implications, especially for managers and management consultants in a global context, regarding the cultural relevance of trust in the new and foreign environment, and the effective management of trust among culturally diverse workforces and business relationships. In addition, the study should serve as a supplemental learning material in the business and management disciplines to demonstrate the essential role of trust in the global business environment.Originality/valueThe study adds to the existing body of knowledge on trust by offering new empirical insights into how culture plays an influential role in the creation of trust. This serves as a good starting point for academic scholars and practicing professionals to further develop appropriate management strategies and execution plans for managing trust across different cultural settings.

Journal

Review of International Business and StrategyEmerald Publishing

Published: Nov 20, 2019

Keywords: Trust; Culture; International business; Cultural differences; Hofstede’s cultural dimensions; Culture; Hofstede’s cultural dimensions; Cultural differences; Trust; International business

References