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How much does trust really matter? Some reflections on the significance and implications of Madhok's trust-based approach

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Abstract

Madhok's 1995 article defined and developed a trust-based perspective on the stability of international joint ventures (IJVs). Proposing a shift in focus from ownership to relationship, and from governance form to process, the article emphasised the role of trust in holding IJVs together and the importance of considering the dynamics of inter-organisational collaboration. By distinguishing between structural and social components of trust, it contributed to a more nuanced understanding of what makes inter-firm partnership durable and able to realise its value potential. This paper reviews Madhok's original ideas and highlights the influence they have had on the field of international business. It concludes with avenues for further research inspired by the article.

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Notes

  1. This section draws extensively on previous work by Svejenova et al. (2005).

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Acknowledgements

I am grateful to Arie Lewin and Mitchell Koza for their stimulating ideas and to Luis Vives for his helpful comments and suggestions. I acknowledge the committed assistance of Dorota Wasik in editing the manuscript.

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Authors and Affiliations

  1. Business Policy Department, ESADE Business School, Barcelona, Spain

    Silviya Svejenova

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  1. Silviya Svejenova
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Correspondence to Silviya Svejenova.

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Accepted by Arie Y Lewin, Editor-in-Chief, 17 October 2005.

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Svejenova, S. How much does trust really matter? Some reflections on the significance and implications of Madhok's trust-based approach. J Int Bus Stud 37, 12–20 (2006). https://doi.org/10.1057/palgrave.jibs.8400181

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