What Makes Executives Trust Each Other? The Determinants of the Willingness to Rely on Trust in Business Partnerships

13 Pages Posted: 27 Aug 2007

See all articles by Francis Bidault

Francis Bidault

European School of Management and Technology (ESMT)

José de la Torre

Florida International University - Alvah H. Chapman Graduate School of Business

Casimir de Rham

International University of Monaco

Michelle Sisto

EDHEC Business School

Abstract

This paper is concerned with understanding and identifying factors that affect the willingness of business executives to rely on trust as a governance mechanism in the context of partnerships. An instrument was designed (a short business case study followed by a questionnaire) to collect data on how different executives react to the objective conditions of a business deal. Through the questionnaire, individual willingness to rely on trust, individual reaction to traditional types of trust, and sensitivity to other situations that evolve during the deal were measured. It is shown that willingness to rely on trust varies amongst executives and is not fully determined by the conditions of a deal. Furthermore, consistent with a psycho-sociological approach to trust, it is also shown that demographic factors are related to propensity to rely on trust, and that across nationalities, the sensitivity to factors affecting trust such as partner interaction and external information differ.

Suggested Citation

Bidault, Francis and de la Torre, José and de Rham, Casimir and Sisto, Michelle, What Makes Executives Trust Each Other? The Determinants of the Willingness to Rely on Trust in Business Partnerships. Creativity and Innovation Management, Vol. 16, No. 3, pp. 317-329, September 2007. Available at SSRN: https://ssrn.com/abstract=1008076 or http://dx.doi.org/10.1111/j.1467-8691.2007.00444.x

Francis Bidault (Contact Author)

European School of Management and Technology (ESMT) ( email )

10117 Berlin
Germany

José De la Torre

Florida International University - Alvah H. Chapman Graduate School of Business ( email )

University Park
11200 SW 8th Street
Miami, FL 33199
United States

Casimir De Rham

International University of Monaco

2, avenue Prince Hereditaire Albert
Monaco, MC 98000
France

Michelle Sisto

EDHEC Business School ( email )

393 Promenade des Anglais
Nice, 06300
France
+33 493 187828 (Phone)

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