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Management International Review

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01.10.2010 | Research Article

The Determinants of Local Suppliers’ Trust Towards Foreign Buyers

verfasst von: Assoc. Prof. En Xie, Prof. Yuan Li, Ass. Prof. Zhongfeng Su, Assoc. Prof. Hock-Hai Teo

Erschienen in: Management International Review | Ausgabe 5/2010

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Abstract

This study examines how local suppliers’ trust towards their foreign buyers is developed in international buyer-supplier cooperation. By identifying cognition- and affect-based trust as two primary dimensions of interfirm trust in international buyer-supplier cooperation, we investigate how the two types of trust are determined by structural and social exchange attributes, and whether the two types of trust are complementary.
A survey and analysis of 155 buyer-supplier relationships between Chinese local suppliers and foreign buyers indicates that opening information exchange and institutionalization of cooperation have positive influence on cognition-based trust, while inter-firm diversity exerts a mixed impact on cognition-based trust. In addition, socialized interaction and assistance offered by foreign firms are strongly related to affect-based trust. We also find that Chinese firms’ cognition- and affect-based trust towards their foreign partners are complementary.

Vorheriger Artikel Cultural Accommodation and Language Priming

Nächster Artikel Multinational Companies and the Diffusion of Employment Practices from Outside the Country of Origin

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According to Saxton (1997), performance of cooperation was operationalized with a three-item measure scale: (1) overall, we are very satisfied with the performance of this cooperation, (2) the cooperation has realized the goals we set out to achieve, and (3) the cooperation has contributed to our core competencies and competitive advantage (Cronbach Alpha = 0.64). The independent variables include: cognition-based trust, affect-based trust, the interaction item (the product of standardized cognition- and affect-based trust). Three control variables were selected: Inter-firm diversity in management, inter-firm diversity in technology, and the age of cooperation.

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Titel: The Determinants of Local Suppliers’ Trust Towards Foreign Buyers
verfasst von: Assoc. Prof. En Xie
Prof. Yuan Li
Ass. Prof. Zhongfeng Su
Assoc. Prof. Hock-Hai Teo
Publikationsdatum: 01.10.2010
Verlag: SP Gabler Verlag
Erschienen in: Management International Review / Ausgabe 5/2010
Print ISSN: 0938-8249
Elektronische ISSN: 1861-8901
DOI: https://doi.org/10.1007/s11575-010-0050-3

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