Business Commons^™

Four Research-Based Paradigms For Teaching Trust, Michele Williams

Michele Williams

Cynicism In Negotiation: When Communication Increases Buyers’ Skepticism, Eyal Ert, Stephanie J. Creary, Max H. Bazerman

Stephanie J. Creary

The economic literature on negotiation shows that strategic concerns can be a barrier to agreement, even when the buyer values the good more than the seller. Yet behavioral research demonstrates that human interaction can overcome these strategic concerns through communication. We show that there is also a downside of this human interaction: cynicism. Across two studies we focus on a seller-buyer interaction in which the buyer has uncertain knowledge about the goods for sale, but has a positive expected payoff from saying “yes” to the available transaction. Study 1 shows that most buyers accept offers made by computers, but that …

Generational Diversity Can Enhance Trust Across Boundaries, Michele Williams

Michele Williams

In interorganizational project teams, generational diversity among team members undermines the experience of trust within demographically similar dyads but enhances the experience of trust within demographically dissimilar dyads.

In Service For Sharing: Leadership And Leader - Follower Relationship Factors As Influencers Of Tacit Knowledge Sharing In The It Industry, Billy Whisnant, Odai Khasawneh

Odai Khasawneh

Effects Of Cultural Ethnicity, Firm Size, And Firm Age On Senior Executives’ Trust In Their Overseas Business Partners: Evidence From China, Crystal X. Jiang, Roy Y. J. Chua, Masaaki Kotabe, Janet Y. Murray

Roy Chua

We investigate trust relationships between senior business executives and their overseas partners. Drawing on the similarity-attraction paradigm, social categorization theory, and the distinction between cognition- and affect-based trust, we argue that executives trust their overseas partners differently, depending on the partners’ cultural ethnicity. In a field survey of 108 Chinese senior executives, we found that these executives have higher affect-based trust in overseas partners of the same cultural ethnicity as themselves; cognition-based trust is associated with affect-based trust differently when overseas partners are of the same or different cultural ethnicity. We also examine the role of relative firm size and …

The Role Of Interpersonal Communication In The Development Of Client Trust And Closeness In A Sme Professional Services Context, Les Kirchmajer, Paul Patterson

Laszlo Kirchmajer

This study develops and tests a model of effective interpersonal communication as an antecedent to client trust and closeness amongst small to medium enterprise (SJ\1E) professional services providerspersonal fmancial planners. A new multidimensional scale for interpersonal communications is developed and tested, resulting in the identification of three dimensions : Communications clarity (5 items),Social communications (4 items), and Information provision (7 items). Client trust is investigated also as a multidimensional construct with credibility trust and benevolence trust being the two dimensions used. Closeness is investigated as a unidimensional construct. The results suggest that there is a positive relationship between communications clarity …

A Voice Is Worth A Thousand Words: The Implications Of The Micro-Coding Of Social Signals In Speech For Trust Research, Benjamin Waber, Michele Williams, John Carroll, Alex Pentland

Michele Williams

While self-report measures are often highly reliable for field research on trust (Mayer and Davis, 1999), subjects often cannot complete surveys during real time interactions. In contrast, the social signals that are embedded in the non-linguistic elements of conversations can be captured in real time and extracted with the assistance of computer coding. This chapter seeks to understand how computer-coded social signals are related to interpersonal trust.

The Influence Of Leadership And Trust On The Sharing Of Tacit Knowledge: Exploring A Path Model, Billy Whisnant, Odai Khasawneh

Odai Khasawneh

Sweet Little Lies: Social Context And The Use Of Deception In Negotiation, Mara Olekalns, Carol T. Kulik, Lin Chew

Mara Olekalns

Social context shapes negotiators’ actions, including their willingness to act unethically. In this research, we test how three dimensions of social context – dyadic gender composition, negotiation strategy, and trust – interact to influence one micro-ethical decision, the use of deception, in a simulated negotiation. To create an opportunity for deception, we incorporated an indifference issue – an issue that had no value for one of the two parties – into the negotiation. Deception about this issue was least likely to be affected by trust or negotiation strategy in all-male dyads, suggesting that dyads with at least one female negotiator …

Maybe It’S Right, Maybe It’S Wrong: Structural And Social Determinants Of Deception In Negotiation, Mara Olekalns, Chris Horan, Philip Smith

Mara Olekalns

Context shapes negotiators’ actions, including their willingness to act unethically. Focusing on negotiators use of deception, we used a simulated two-party negotiation to test how three contextual variables - regulatory focus, power, and trustworthiness - interacted to shift negotiators’ ethical thresholds. We demonstrated that these three variables interact to either inhibit or activate deception, providing support for an interactionist model of ethical decision-making. Three patterns emerged from our analyses. First, low power inhibited and high power activated deception. Second, promotion-focused negotiators favored sins of omission whereas prevention-focused negotiators favored sins of commission. Third, low cognition-based trust influenced deception when negotiators …

Maybe It’S Right, Maybe It’S Wrong: Structural And Social Determinants Of Deception In Negotiation, Mara Olekalns

Mara Olekalns

Context shapes negotiators’ actions, including their willingness to act unethically. Focusing on negotiators use of deception, we used a simulated two-party negotiation to test how three contextual variables - regulatory focus, power, and trustworthiness - interacted to shift negotiators’ ethical thresholds. We demonstrated that these three variables interact to either inhibit or activate deception, providing support for an interactionist model of ethical decision-making. Three patterns emerged from our analyses. First, low power inhibited and high power activated deception. Second, promotion-focused negotiators favored sins of omission whereas prevention-focused negotiators favored sins of commission. Third, low cognition-based trust influenced deception when negotiators …

Towards A Conceptual Model Of User Acceptance Of Location-Based Emergency Services, Anas Aloudat, Katina Michael

Professor Katina Michael

This paper investigates the introduction of location-based services by government as part of an all-hazards approach to modern emergency management solutions. Its main contribution is in exploring the determinants of an individual’s acceptance or rejection of location services. The authors put forward a conceptual model to better predict why an individual would accept or reject such services, especially with respect to emergencies. While it may be posited by government agencies that individuals would unanimously wish to accept life-saving and life-sustaining location services for their well-being, this view remains untested. The theorised determinants include: visibility of the service solution, perceived service …

The Influence Of Infrastructural Trust On Electronic Commerce Development In Indonesia, Mira Kartiwi, Robert C. Macgregor

Dr Mira Kartiwi

The advent of E-commerce opens an opportunity for fostering an environment that promotes the globa/isation of markets throughout the world, especially those in developing countries /ike Indonesia. The importance of trust as a key facilitator of E-commerce is increasingly being recognized in academic and practitioner communities. However, empirical research in this area has been overwhelmed by contradictory conceptions of the trust construct, while inadequate attention is paid to the influence of trust constructs on E-commerce development in different cultural environments and settings. It is, therefore, the aim of this paper to address the gap by providing an exploratory study on …

The Effects Of Structure, Communication And Trust Between Marketing And R&D During New Product Development, Elias Kyriazis, Graham Massey

Elias Kyriazis

The ability to effectively manage cross-functional working relationships (CFRs) during innovation is a key success factor in developing successful new products. However, empirical evidence suggests that CFRs during new product development are often problematic, resulting in extremely poor relations between managers, and the development of unsuccessful new products. This paper adds to our existing knowledge on the Marketing/R&D CFR by examining the effects of structural factors, communication behaviours, and interpersonal trust on the dependent variable perceived relationship effectiveness. Our findings reveal that trust has potent positive, direct effects on this CFR. Further, bidirectional communication and quality of communication also have …

Common Criteria Meets Realpolitik Trust, Alliances, And Potential Betrayal, Jan Kallberg

Jan Kallberg

Common Criteria for Information Technology Security Evaluation has the ambition to be a global standard for IT-security certification. The issued certifications are mutually recognized between the signatories of the Common Criteria Recognition Arrangement. The key element in any form of mutual relationships is trust. A question raised in this paper is how far trust can be maintained in Common Criteria when additional signatories enter with conflicting geopolitical interests to earlier signatories. Other issues raised are control over production, the lack of permanent organization in the Common Criteria, which leads to concerns of being able to oversee the actual compliance. As …

Regulation Of Aboriginal Labour In Queensland: Protectors, Agreements And Trust Accounts 1897/ 1965, Robert Castle, James Hagan

Robert G. Castle

No abstract provided.

Location-Based Social Networking And Its Impact On Trust In Relationships, Sarah Jean Fusco, Roba Abbas, Katina Michael, Anas Aloudat

Professor Katina Michael

Location based social networking (LBSN) applications are part of a new suite of social networking tools. LBSN is the convergence between location based services (LBS) and online social networking (OSN). LBSN applications offer users the ability to look up the location of another “friend” remotely using a smart phone, desktop or other device, anytime and anywhere. Users invite their friends to participate in LBSN and there is a process of consent that follows. This paper explores the potential impact of LBSN upon trust in society. It looks at the willingness of individuals to share their location data with family, friends, …

Switching Costs And Loyalty: Understanding How Trust Moderates Online Consumers’ Ties To Merchants, Michelle Carter, Richard Klein, Jason B. Thatcher, Ryan Wright

Jason Bennett Thatcher

Information technology has transformed how travelers interact with travel service providers. Due to fierce competition in the online air travel industry, e-ticketing services have focused attention on fostering customer loyalty. This is an important strategy because, in general, initial transactions with new customers are less profitable than transactions with existing customers. Drawing on research on customer loyalty, switching costs, and trust, this study develops, and proposes an empirical test, for a model incorporating trust as a moderator of the relationship between switching costs and online customer loyalty. We propose that in the presence of high customer trust, e-businesses should have …

Toolkit For Managing Virtual Teams, Grace Mccarthy

Grace McCarthy

Leaders in multi-national organisations have to work with team members in many different locations, with few if any face to face meetings. This poses problems for leaders used to working face to face. This article briefly reviews the literature, finding some consensus that leadership is significant in managing virtual teams but that the practices adopted by leaders need to be adapted, that trust is one of the key predictors of success, and that technology and training also help improve performance of virtual teams.

Negotiations And Trust, Mara Olekalns, Philip L. Smith

Mara Olekalns

This forthcoming entry in the Encyclopaedia of Peace Psychology provides an overview of trust in negotiation

But Can I Trust Her? Gender And Expectancy Violations In Negotiation, Mara Olekalns, Carol Kulik, Dasha Simonov, Carolyn Bradshaw

Mara Olekalns

Women who negotiate incur social backlash, being perceived as more pushy and demanding than women who do not negotiate. In two experiments, we test the boundary conditions for this backlash effect. Using a simulated employment contract negotiation, we explore how the strategies that women use, who they negotiate with (E1) and the organizational context within which they negotiate (E2) affects one social outcome, women’s perceived trustworthiness. We compare the how men and women evaluate the use of a gender-congruent accommodating style or a a gender-incongruent, competing style (E1) in either an agentic or a communal organizational culture (E2). In both …

Turning Points In Negotiation, Daniel Druckman, Mara Olekalns

Mara Olekalns

This manuscript will appear as a "State of the Art" Commentary about turning points in negotiation

Mindsets: Sensemaking And Transition In Negotiation, Mara Olekalns, Philip L. Smith

Mara Olekalns

A negotiation’s opening moments are characterized by high levels of uncertainty. During this phase, individuals screen each other’s behavior for clues about underlying goals and motives. Much of this information is conveyed implicitly by the language that negotiators use. The words they choose and the way they respond to the other party provide important clues about negotiators’ dominant goals and strategy preferences. At the same time, negotiators use incoming information to assess the other party’s intentions. In negotiation, this uncertainty resolves itself into questions about the other party’s trustworthiness. Because negotiations are characterized by a vulnerability to the actions of …

Interpretive Filters: Social Cognition And The Impact Of Turning Points In Negotiation, Dan Druckman, Mara Olekalns, Philip Smith

Mara Olekalns

A number of studies have shown that certain events that occur during a negotiation can alter its course. Referred to as "turning points," these events are precipitated by actions taken either outside or inside the talks that have consequences for outcomes. In this article, we report the results of two experiments designed to examine the impacts of two types of precipitating actions, external and internal. In the first experiment, which focused on external actions, we found that crises — as opposed to breakthroughs — produced more movement in negotiations in which parties viewed the social climate positively (high trust, low …

Mutually Dependent: Power, Trust, Affect And The Use Of Deception In Negotiation, Mara Olekalns, Philip Smith

Mara Olekalns

Using a simulated two-party negotiation, we examined how trustworthiness and power balance affected deception. To trigger deception, we used an issue that had no value for one of the two parties. We found that high cognitive trust increased deception whereas high affective trust decreased deception. Negotiators who expressed anxiety also used more deception whereas those who expressed optimism also used less deception. The nature of the negotiating relationship (mutuality and level of dependence) interacted with trust and negotiators’ affect to influence levels of deception. Deception was most likely to occur when negotiators reported low trust or expressed negative emotions in …

The Relational Foundations Of Strategic Choice In Negotiation, Mara Olekalns, Philip Smith

Mara Olekalns

Representing negotiations as social exchanges highlights negotiators’ implicit obligations to honor exchanges and the risk that they will fail to do so. Based on their representation of the underlying relationship, negotiators are oriented to one of four relational risks (failures in reliability, predictability, benevolence or integrity). The salience of a specific relational risk shifts negotiators’ strategic focus and elicits a distinct strategic cluster (deterrence, co-ordination, obligation, collaboration) aimed at offsetting or neutralizing these relational risks.

Resolving The Empty Core: Trust As A Determinant Of Outcomes In Three-Party Negotiations, Mara Olekalns, Feyona Lau, Philip Smith

Mara Olekalns

This research examined how trust affected resource allocation in a 3-party negotiation. Negotiators were presented with an empty core problem in which their theoretical share of resources exceeded the resources available for distribution. We tested which of three components of trust – reliability, predictability and empathy – predicted negotiators’ outcomes. We distinguished between absolute and relative trust. We found that relative trust was a more consistent predictor of individual outcomes than absolute trust and that the most trusted party in a network obtained the highest individual outcomes. This finding highlights the importance of social context in shaping trust judgements. The …

Loose With The Truth: Predicting Deception In Negotiation, Mara Olekalns, Philip Smith

Mara Olekalns

Using a simulated, two-party negotiation, we examined how characteristics of the actor, target, and situation affected deception. To trigger deception, we used an issue that had no value for one of the two parties (indifference issue). We found support for an opportunistic betrayal model of deception: deception increased when the other party was perceived as benevolent, trustworthy and as having integrity. Negotiators’ goals also affected the use of deception. Individualistic, cooperative and mixed dyads responded differently to information about the other party’s trustworthiness, benevolence and integrity when deciding to either misrepresent or leverage their indifference issue. Mixed dyads displayed opportunistic …

Moments In Time: Metacognition, Trust And Outcomes In Negotiation, Mara Olekalns, Philip Smith

Mara Olekalns

This research tested the relationships between turning points, cognitive and affective trust, and negotiation outcomes. After completing a simulated negotiation, participants identified turning points from videotape. Turning points were then classified as substantive (interest, offer), characterization (positive, negative), or procedural (positive, negative). Pre-negotiation affective trust predicted subsequent turning points whereas pre-negotiation cognitive trust did not, suggesting that different cues influence the two types of trust. Post-negotiation cognitive trust was increased by the occurrence of interest, positive characterization, and positive procedural turning points and decreased by negative characterization turning points. Affective trust was increased by positive procedural turning points. Finally, interest …