A Dynamic Model of Trust and Commitment Development in Strategic Alliances

Abstract

Although trust and commitment are important for the success of any alliance activity, there is only a minimal attention given to the 'soft' side of alliance management. In this article we propose a dynamic framework for the development of trust and commitment in different alliance types. We argue that firms with competitive motives will lead to a failure of the alliance and suggest that both trust and commitment have two components - rational and emotional. Based on these, we propose that the final outcome of an alliance relationship will depend on the development of trust and commitment over time, which in turn will depend on the motives with which firms enter into relationships.

Keywords: Strategic Alliance, Joint venture, Trust, Commitment, Motives