The changing importance of affective trust and cognitive trust across the relationship lifecycle: A study of business-to-business relationships

The purpose of this paper is to examine affective trust and cognitive trust and their effects on business relationship outcomes. Within a relationship marketing framework, the influence of affective trust and cognitive trust on the success of business relationships at the early and mature phases of the relationship lifecycle is examined. Both affective and cognitive forms of trust are demonstrated to be multidimensional constructs that indirectly influence relationship performance via the mediating variables commitment and liking.The development and use of five elements of trust to explain relationship performance extends existing understanding of relationship marketing. By combining five elements of trust (three cognitive and two affective) and testing them in two different relationship lifecycle phases, insights are generated into how a relationship can succeed. The model tested in this paper highlights the importance of affective trust in the early phase and cognitive trust in the mature phase of the relationship lifecycle. Further, the mediating roles of commitment and liking between trust and relationship performance are also developed. Hence, the research increases understanding of how relationships evolve, in particular the role of affective trust and cognitive trust in influencing relationship performance.The context of this research is business-to-business relationships in small and medium enterprises. A survey of 458 businesses people is used to evaluate both the early and mature relationship lifecycle phases. The data are analysed with structural equation modelling where the basic structural model testing is extended with multigroup analysis.     

Adding co-creation as an antecedent condition leading to trust in business-to-business relationships

Trust enjoys wide acceptance among scholars as a key facilitator of inter-organisational relationship development, and successful relationship development demands an understanding of what drives the propensity to trust between organisations within both cognitive and affective dimensions of trust. The six most salient antecedents of trust within contemporary trust literature have been identified as satisfaction, communication, competence, shared values, benevolence and integrity. This research suggests that co-creation is also an important antecedent of trust in business-to-business relationships. Co-creation is described here as the active participation, interactions and collaboration of the buyer and seller and other actors in the marketing exchange to develop a deeper understanding of the customer problem solving context.The relative strength of the cognitive and affective aspects of trust antecedents, the moderating influence of business experience and seniority on the relationship between significant antecedents and trust is also explored. The analysis uses statistical tools and then probes deeper using fuzzy-set qualitative comparative analysis (fsQCA).     

The interplays of coopetition,conflicts, trust,and efficiency process innovation in vertical B2B relationships

In this study, we examine the interplays among coopetition, conflicts, trust, and efficiency process innovation in vertical business-to-business (B2B) relationships. We posit that, in vertical B2B relationships, coopetition is positively associated with efficiency process innovation. Such association is also mediated by conflicts (i.e., affective and cognitive), thus resulting in the indirect effects of vertical coopetition on efficiency process innovation through affective and cognitive conflicts. In addition, we hypothesize that the conflict-based indirect effects are contingent on the trust level in the coopetitive relationships. We then empirically test the proposed hypotheses, using survey data collected from two international trade fairs. The results yield support for the positive association between vertical coopetition and efficiency process innovation. The mediating role of affective conflict in the indirect effect of vertical coopetition on efficiency process innovation is also supported, but that of cognitive conflict is not. Finally, the results indicate that trust moderates the indirect effect of vertical coopetition on efficiency process innovation through cognitive conflict but not through affective conflict. The implications of our findings for future research and managerial practices are also discussed.     

Development of special forms of B2B relationships: Examining the role of interpersonal liking in developing Guanxi and Et-Moone relationships

The paper examines the driving factors of two of the special forms of relationships that exist in Eastern countries namely Guanxi (China) and Et-Moone (Saudi Arabia). The paper argues that these special forms of relationships that have been found to significantly influence business-to-business relationships in these countries are primarily motivated by the presence of strong interpersonal liking. To do this, a conceptual model has been developed within which interpersonal liking is placed as the key mediating variable. The key outcomes of interpersonal liking are trust and Guanxi (in the Chinese sample) and Et-Moone (in the Saudi sample). Because Guanxi has received significant attention both conceptually and empirically, the research started by conducting in-depth interviews in Saudi Arabia to further explore the concept of Et-Moone. Survey data was collected from 401 businesses in China and Saudi Arabia. Using structural equation modelling, the model has been supported in both samples. The findings show that interpersonal liking plays a crucial role in the development of Guanxi and Et-Moone. Managerial implications and future research are discussed.     

Fundamental transformations of trust and its drivers: A multi-stage approach of business-to-business relationships

This research tests a multistage model of trust in business-to-business (B2B) relationships. The model contains three forms of trust, each with unique drivers and consequences for buyer–supplier relationships. An exploratory qualitative study (N = 38) and four quantitative studies (N_Total = 616) validate the distinct stages (N1 = 140, N2 = 144, N3 = 152) and provide an overall test of the model (N4 = 180), using structural equation modeling techniques. The results support the proposed modeling of the stages and highlight a positive effect of reputation on calculative trust. Conflict resolution, communication, and sympathy positively affect cognitive trust. However, shared values do not significantly drive affective trust. Interdependence also exists among the three trust forms, both directly and indirectly. That is, calculative trust does not affect investments in relationship or confidential communication, but cognitive trust influences these constructs indirectly, through the mediation of affective trust. Affective trust also leads directly to greater investments in relationship and generates additional confidential communication.     

The performance implications of power–trust relationship: The moderating role of commitment in the supplier–retailer relationship

The current research examines how coercive power and non-coercive power affect trust and how these relationships are affected by affective and calculative commitment. It also expands the understanding of the role of an under-researched dimension of performance, i.e., strategic performance, and studies it as a mediating variable in the relationship between trust and financial performance. The proposed model is empirically tested using Partial Least Squares (PLS) in supplier–retailer channel in Taiwan. The findings reveal that affective commitment has a positive moderating effect on the negative relationship between coercive power and trust, while calculative commitment has a negative moderating effect on the positive relationship between non-coercive power and trust. The results also indicate that strategic performance partially mediates the effect of trust on financial performance. The research advances theoretical understanding on the complex power–trust relationship and provides insights into the role of commitment in both enabling and undermining channel relationships. The findings highlight the importance of building affective commitment in channel relationships and the critical role of strategic performance in the trust–financial performance relationship.     

Reciprocity as a key stabilizing norm of interpersonal marketing relationships: Scale development and validation

This study outlines the development and validation of a measure of reciprocity. The definition used to develop the measure extends traditional quid pro quo interpretations to include behavior designed to stabilize relationships in times of exchange breakdown. This includes resisting and not returning harm and making reparation for harm done. Reciprocity is positioned as an important interpersonal norm of stable marketing relationships given recent findings that relationships develop most strongly at the individual level. It is suggested that reciprocity leads to personal well-being; thus providing an additional motivation, over and above economic incentives, to develop and maintain relationships. Results of the scale development tests indicated a valid, two dimensional measure which correlated with key relational variables such as trust, commitment, satisfaction, self-esteem and reduced conflict.     

Trust as Networking Knowledge: Precedents from Australia

Trust, rather than being simply a resource for establishing collaborative relationships between organizations, is an essential component of their constitution. At base, trust involves interpersonal relations of a specific type. These are relations where there is sufficient probability that a person or organization with whom one is in contact will perform an action that is beneficial, or at least not detrimental, for one to consider engaging in some form of cooperation with this person or organization in the future. Trust establishes situations in which participants in collaboration have a long-term and recurrent relationship. Where trust exists, organizations are more willing to collaborate with other organizations on a more reciprocal basis. Trust is especially important when collaboration takes place between competitors because the risk of opportunistic behaviour is higher. Where organizations share resources and information openly with other participants they will seek to reduce opportunistic behaviour through the mutual understanding and goodwill of parties. However, trust is not static; it is a dynamic process that evolves according to the development of the relationship, as one in which the more long-term the relationship, the greater the trust. In this paper, we will present the impact of trust on business networks and examine how their members developed knowledge through networking.     

Pathways for knowledge exchange in SMEs in software-driven knowledge-intensive business services

This paper presents pathways for knowledge exchange as regards innovation in R&D-active SMEs in software-driven knowledge-intensive business services in a capital city environment. A semistructured qualitative analysis focusing at social capital enablers for knowledge exchange reveals that interpersonal social proximity is the primary driver for knowledge exchange. Structural enablers for knowledge exchange include accessibility for clients, geographical proximity to research partners, temporary places for formal and informal meetings, specialization and diversification in terms of human resources skills, and informal interpersonal networks. Market and government-related goals, access to public funding and possibilities for lobbying, as well as openness to a multicultural environment, are all underlying cognitive factors. Relational social capital dimensions include organized trust in terms of neutral ground, goodwill trust-based interpersonal weak ties, and mutually embedded businesses and processes with institutions.     

Temporal dynamics of trust in ongoing inter-organizational relationships

This paper reports the results of a qualitative study undertaken to understand the nature of trust and its consequences for both suppliers and buyers in short term (relatively new) and long term (older/more mature) relationships in inter-organizational contexts. Scholars have recently pointed out the importance of research that investigates the temporal characteristics and dynamics of trust in inter-organizational studies. Our paper responds to this call by indentifying the changing nature of the level of trust as the buyer–supplier relationship matures. Our findings contribute to sparse and conflicting previous research on the relationship between length of partnership and perceptions of trust, types of dark side consequences of trusting relationships, and reasons buyers and suppliers continue or terminate low/no-trust associations. Specifically, we illustrate that buyers and suppliers draw on substantially different metaphors for understanding the nature of trust in long and short term exchange relationships. Suppliers see marked differences in trust with long term versus short term exchange partners, while buyers see little or no difference. Suppliers and buyers also appear to have different conceptions of how trust is nested (or not) within the broader economic and/or personal relationship. Through our inductive model, we elaborate several types of betrayal and disappointment, distinguish several factors that lead suppliers and buyers to stay in relationships with partners they don't trust, and identify key issues that topple untrusting relationships into terminated relationships.     

Emotions, trust and relationship development in business relationships: A conceptual model for buyer-seller dyads

Existing research on buyer-seller relationships has focused on the role played by trust in shaping the dynamics of interpersonal interaction between the buyer and the seller. While this is undoubtedly an important variable in governing the interactional dynamics it is by no means the only variable. The paper begins by reviewing the existing literature on buyer-seller relationships. The role played by emotions is articulated. Finally, it is recognized that the emotions that emerge in a buyer-seller relationship do so at multiple levels. A model and propositions highlighting the impact of emotions on interpersonal relationships are developed. Illustrative cases are used to ground the propositions empirically.     

Affective commitment,home-based working and the blurring of work–home boundaries: Evidence from Germany

Analysis of data from the representative German Linked Personnel Panel revealed that, overall, the use of home-based working is associated with a higher affective organisational commitment on the part of employees. However, this is less often the case when the use of home-based working involves the blurring of work–home boundaries. Perceived trust and fairness on the part of supervisors mediates the association between employees' experiences with working from home and their affective commitment. These results show that experiences with home-based working shape employees' perceptions of trust and fairness in their exchange relations with supervisors and thus their affective commitment to the organisation. Employees' experiences with home-based working that reflect its supportive implementation by their employers and supervisors are critical for their commitment. Our results provide the first evidence that in exchange relations between employees and supervisors, perceived fairness is as important as perceived trust.     

Antecedents and consequences of commitment in marketing research services: The client's perspective

Commitment is one of the most frequently studied variables in business-to-business relationships and several researchers propose it is the main antecedent of customer loyalty. However, while marketing relationships researchers agree on the importance of the construct, differences remain in its conceptualization and operationalization. This study examines commitment from the customer's perspective, consisting of three components: calculative, affective and normative. Relationships were tested between the three dimensions of commitment and social bonds, trust and satisfaction in the context of professional business services providers and their clients. The results of the model that was tested in Central and Eastern European companies show that affective commitment is the only one of the three components that significantly influences customer loyalty. Trust and social bonds have no significant relation either to normative or to calculative commitment while a relation of overall satisfaction with normative and calculative commitment is negative. The theoretical and managerial implications for the model to assist in the development of appropriate strategies to achieve affective commitment and loyalty in business relationships are discussed.     

Concerning trust and information

Communication and the associated information exchanges are key drivers of the development of relationships and of the trust embedded within them. This paper considers the development of business relationships in terms of the continuing co-evolution of trust and information exchange and the issues associated with researching these processes. The interconnections of trust and information exchange are examined in a survey of business relationships involving information exchange (n = 355). Analysis of variance shows few, if any, of the aspects of the standard conceptualizations of information exchange are associated with increased levels of trust. It is information exchange norms that have the greatest (positive) association with the level of trust. These norms emerge as part of the long term co-production of the relationship itself. This has important managerial implications. We conclude there are few managerial actions involving managing communication that can “manufacture” trust and improve or develop relationships in the short term. The paper concludes with a discussion of alternative ways of envisaging communication and relationship management and the nature and future of research into the evolution of business relationships.     

Governing interfirm knowledge transfer in the Chinese market: The interplay of formal and informal mechanisms

Building on knowledge management literature and relational exchange theory, this study addresses how formal (i.e., ex ante contracts and ex post control) and informal mechanisms (i.e., trust) affect interfirm knowledge transfer in the Chinese emerging market. The results of a survey of 343 manufacturer–supplier relationships show that whereas formal control fosters knowledge transfer, contracts are not significantly related to knowledge transfer, and trust greatly facilitates knowledge flows between exchange relationships. Moreover, trust and contracts have a positive joint effect, whereas trust and control have a negative joint effect, on interfirm knowledge transfer. The findings provide important theoretical and managerial implications for interfirm knowledge governance in China.     

The multiple levels of trust when selecting suppliers – Insights from an automobile manufacturer

In this study, we aim to develop a framework for the concept of trust prior to forming relationships when selecting suppliers. Entering a relationship with a supplier for an extended period requires a certain level of trust in different facets (such as interpersonal relationships, continuous supply, and compatibilities). In situations in which suppliers need to enter into relationships characterized by high uncertainties, such as sourcing for high technology, trust becomes even more important. The question raised is how this ex-ante trust is defined and used during the supplier selection, when the buyer decides to enter into a relationship with a potential supplier. The phenomenon is studied in the automobile industry, which is experiencing a higher level of dependency on suppliers for sensitive, and at times strategic, components. A single case of a major auto manufacturer is studied using 36 interviews. Our findings show that when selecting the supplier with which to enter a relationship, trust manifests itself on multiple levels: interpersonal, organizational, interorganizational, and network. Contrary to some previous suggestions in the literature, we found interrelationships across these levels.     

The impact of psychological contracts upon trust and commitment within supplier-buyer relationships: A social exchange view

Central to this study is the emerging body of knowledge describing how social exchange relationships are being nurtured. A random sample of 343 Australian distributor firms from within the motorized vehicle industry was used to test a model developed on the basis of social exchange theory. Psychological contracts are perceptual in nature and were found to encompass reciprocal obligations stemming directly from the relational orientation between suppliers and distributors. This construct was also shown to have a positive impact upon the level of trust and commitment within the relationship. These findings have significant managerial implications for the manner in which managerial decision makers are modelling the firm-customer relationship because trust and commitment are essential elements in the development and maintenance of such relationships. The theoretical and managerial implications discussed have highlighted the need for further studies because there are deficiencies in the marketing literature pertaining to this important construct.     

When Western measures meet Eastern perspectives: A prototyping analysis of xinren in buyer-seller relationships

This paper contributes to our understanding of xinren within buyer-seller relationships. Xinren is often translated to trust and is critical for the development of strong business relationships. Previous conceptualizations and measurements of xinren have been inconsistent and questionable. Through a novel methodology, prototyping analysis, this research outlines a foundational structure for xinren. A series of 4 studies were conducted on xinren in buyer-seller relationships in China involving a total of 311 participants who were employed in sourcing and procurement (33.23%) or marketing and sales (31.29%), and had spent less than one year working outside China. Central prototypical features include high arousal emotions highlighting the importance of affect-based aspects when developing xinren. Negative features indicate that both trust and distrust may be synergistically operating within xinren. Contributions are also made by outlining both universal trust features and more culturally-nuanced trust features. Suggestions for managers indicate how both Eastern and Western partners may use these results to build deeper trust within their relationships. Future research includes undertaking further prototyping analysis on trust within other cultures to develop foundational structures that may include both universal and culturally-nuanced trust features.     

The Moderating Effects of Virtuality on the Antecedents and Outcome of NPD Team Trust

The fundamental dynamics of virtual and traditional face-to-face teams may be very different. The purpose of this study is to empirically examine and assess the moderating effects of virtuality on the antecedents and outcome of trust, where virtuality is measured along a continuum from face to face (no virtuality) to fully virtual rather than the more common approach of dichotomizing teams into two groups (i.e., face to face and virtual). The sample includes 116 different new product development teams from a variety of industries. The antecedents of trust that are studied are familiarity, goal clarity, training, relationship conflict, and process conflict. The outcome of trust is analyzed by determining how the impact of trust on cooperation changes as the level of virtuality changes. Primary findings are as follows: (1) Relationship conflict can be more detrimental to virtual teams than face-to-face teams because it is very difficult for team members of virtual teams to resolve their interpersonal disputes; (2) goal clarity is more important for face-to-face teams and less important for virtual teams in creating trust among team members; and (3) the impact of trust on cooperation is less for virtual teams than face-to-face teams. The primary implication for researchers and practice of these findings is that the role and importance of trust in virtual teams needs to be reevaluated. Managers using virtual teams need to realize that interpersonal relationships in virtual teams do not evolve in the same manner as face-to-face teams and may require different management techniques to be successful.     

Organization–stakeholder fit: A dynamic theory of cooperation,compromise, and conflict between an organization and its stakeholders

Research Summary : We advance the concept of organization–stakeholder fit (O–S fit) to explain cooperative behavior between an organization and its stakeholders. O–S fit describes the compatibility that exists between an organization and a stakeholder when their characteristics are well matched. We highlight two dimensions of O–S fit: value congruence, or the supplementary fit of organizational and stakeholder values, and strategic complementarity, or the complementary fit of strategic needs and resources. For each dimension, we detail the unique relational factors—including core elements of trust, predictability, attraction/exchange, and communication—that motivate cooperation. We then explicate the ways in which value congruence and strategic complementarity dynamically interrelate over time. Finally, we consider how organization‐stakeholder misfit may result in alternative relational behaviors, such as conflict or compromise. Managerial Summary : We develop a new way of thinking about the relationship between organizations and stakeholders. Recognizing that positive relationships require a degree of fit or compatibility, we argue that cooperative behavior between an organization and its stakeholders is maximized when relational partners share both core values and strategic priorities. We explain that high fit along these two dimensions increases trust, relational predictability, attraction/exchange, and communication. We also describe how positive relationships might be formed with fit along only one dimension, and how negative relationships might result in the presence of misfit. Ultimately, we suggest that managers who want to foster positive relationships with stakeholders should concentrate on aligning their values and priorities, rather than simply concentrating on one or the other.