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Creating trust in piranha-infested waters: The confluence of buyer, supplier and host country contexts

Journal of International Business Studies volume 42, pages 48–55 (2011)Cite this article

Abstract

Research by Dyer and Chu (2000) suggests that trust in exchange varies significantly across borders and influences the level of trust in cross-border exchange dyads. However, while this is a good start, research has yet to develop the concept that not only can the countries of origin of the exchange partners influence the nature and outcomes of dyadic trust but also the country where the exchange dyad is located. Furthermore, such home and host country differences may interact with dyad-level differences in trust creation capabilities and influence trust violation and repair. We develop a framework and propositions along these lines.

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Figure 1

Notes

  1. While buyers often tend to possess more power than suppliers, the position in the exchange dyad could vary based on the industry structure (e.g., the barriers to entry and exit, the number and concentration of buyers and suppliers).

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Acknowledgements

We presented some of the ideas reflected in this paper at the Academy of International Business Meeting in Rio de Janeiro in June 2010. We thank JIBS Editor Lorraine Eden for inviting us to participate in the Dyer and Chu (2000) Decade Award process and for her valuable comments on an earlier draft. We are grateful to Kangyong Sun, Kyungmin Baek, Sri Zaheer and the three anonymous reviewers for their useful comments. All errors are ours.

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Authors and Affiliations

  1. 3-365 Carlson School of Management, University of Minnesota, Minneapolis, USA

    Akbar Zaheer & Darcy Fudge Kamal

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  1. Akbar Zaheer
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  2. Darcy Fudge Kamal
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Correspondence to Akbar Zaheer.

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Accepted by Lorraine Eden, Editor-in-Chief, 27 September 2010. This paper has been with the authors for one revision.

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Zaheer, A., Kamal, D. Creating trust in piranha-infested waters: The confluence of buyer, supplier and host country contexts. J Int Bus Stud 42, 48–55 (2011). https://doi.org/10.1057/jibs.2010.49

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  • DOI: https://doi.org/10.1057/jibs.2010.49

Keywords

  • cross national trust
  • exchange dyads
  • power
  • host country
  • home country