Trust - a Source of Success in Strategic Alliances?

Schmalenbach Business Review, Vol. 58, pp. 259-278, July 2006

20 Pages Posted: 19 Jul 2006

See all articles by Christoph R. Schumacher

Christoph R. Schumacher

Massey University - Department of Commerce

Abstract

I empirically test the role of trust in strategic alliances by using survey data from 67 German small and medium-sized enterprises (SMEs). Empirical findings indicate that high trust levels are a good predictor of alliance success. This result is encouraging, as it suggests that well-performing relationships can be differentiated from low performers on the basis of mutual trust. Furthermore, the study shows that the level of safeguards used in an alliance is decreasing in the level of trust and increasing in the gain from opportunistic behavior.

Keywords: Alliance, Co-Operation Structure, Performance, Small and Medium-sized Enterprise, Trust

JEL Classification: D23

Suggested Citation

Schumacher, Christoph R., Trust - a Source of Success in Strategic Alliances?. Schmalenbach Business Review, Vol. 58, pp. 259-278, July 2006. Available at SSRN: https://ssrn.com/abstract=917589

Christoph R. Schumacher (Contact Author)

Massey University - Department of Commerce ( email )

Auckland
New Zealand

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