Organizational Behavior and Theory Commons^™

Fairness-Trust-Loyalty Relationship Under Varying Conditions Of Supplier-Buyer Interdependence, Thani Jambulingam, Ravi Kathuria, John R. Nevin

Business Faculty Articles and Research

Relationship marketing plays a significant role in supply chain practice and academic studies. Using the resource advantage theory within the relationship marketing framework, we studied the mediating role of trust as a governance mechanism in the fairness-loyalty relationship under different types of interdependence structure between suppliers (wholesalers) and buyers (retailers). Our findings, based on data from retail pharmacies, demonstrate that only under conditions of symmetric independence, trust, as a governance mechanism, completely mediate the relationship between fairness and loyalty. Under conditions of both perceived independence (i.e., lack of interdependence) and asymmetric buyer dependence, however, trust does not mediate but fairness …

Trust Building, Diagnosis, And Repair In The Context Of Negotiation, Donald L. Ferrin, Dejun Tony Kong, Kurt T. Dirks

Research Collection Lee Kong Chian School Of Business

The following sections are included in this chapter: What is Trust and How is it Manifested in Negotiations?; What Makes a Negotiation Party Trustworthy?; Ability; Integrity; Benevolence; Perceived ability, integrity, and benevolence in combination; How Can I Gain Others' Trust?; How Can I Assess Another's Trustworthiness?; Repairing Trust After a Violation.

Antecedents Of Servant Leadership: A Mixed Methods Study, Curtis D. Beck

Department of Agricultural Leadership, Education, and Communication: Dissertations, Theses, and Student Research

The purpose of this mixed methods study was to explore the antecedents of servant leadership. The sequential explanatory research design consisted of two distinct phases: quantitative followed by qualitative. The Phase One quantitative survey collected data from 499 leaders and 630 raters from community leadership programs in the United States using the Servant Leadership Questionnaire (Barbuto & Wheeler, 2006). During Phase Two, selected leaders from phase one (N = 12) were interviewed to explain those results in more depth. The data were coded and analyzed for possible themes. Triangulation was used to analyze the quantitative and qualitative data to validate …

Testing The Impact Of Global Mindset On Positive Organizational Outcomes: A Multi-Level Analysis, Joana S. Story

Department of Agricultural Leadership, Education, and Communication: Dissertations, Theses, and Student Research

This multi-level study examined the relationship between leaders’ global mindset with followers’ rating of trust in leader, quality of the leader-member relationship (LMX), and organizational commitment. Complexity of global role and leader distance were also examined as moderating variables. Data were collected from 78 leader participants and 240 raters from one Fortune 100 multinational organization. A multilevel data analysis was conducted using Hierarchical Linear Modeling. No significant relationships were found between global mindset and ratings of follower trust in leader and quality of the leader-member-relationship. A significant negative relationship was found between global mindset of leaders and follower organizational commitment. …

Trust Differences Across National-Societal Cultures: Much To Do, Or Much Ado About Nothing?, Don Ferrin, Nicole Gillespie

Research Collection Lee Kong Chian School Of Business

Does trust and its development, functions and meaning, differ between people from different national–societal cultures? There is considerable anecdotal evidence and some theoretical argumentation to suggest it does, but are these supported by empirical research? This chapter reviews the available empirical evidence on the effects of national–societal culture on interpersonal trust. It focuses largely on quantitative empirical evidence to consider the extent to which, and the ways in which, interpersonal trust differs across national–societal cultures. In every category of our review we found evidence of cross-cultural differences, particularly on generalized trust, and also evidence of trust universals across cultures. In …

Examining The Relationship Between Trust And Culture In The Consultant-Client Relationship, Stephanos Avakian, Timothy Clark, Joanne Roberts

Research Collection Lee Kong Chian School Of Business

This chapter examines the dimensions of inter-organizational and interpersonal trust as they are manifested in the consultant–client interaction, viewed within the ‘cultural spheres’ framework (Schneider and Barsoux, 2003). The chapter argues that the alignment or misalignment of culture(s) helps foster or hinder the presence of trust in the consultant–client relationship. We support our argument by demonstrating how culture becomes an important informative resource from which consultants and clients manage their expectations and risk taking. In inter-organizational contexts, trust is developed through artifacts and formal procedures that are shared by both parties. In interpersonal contexts, trust is developed through the mutual …

Antecedents Of Supervisor Trust In Collectivist Cultures: Evidence From Turkey And China, S. Arzu Wasti, Hwee Hoon Tan

Research Collection Lee Kong Chian School Of Business

The premise of much research on dyadic trust building within organizations has been framed around the relationship as it emerges in the work context. Such models, including the seminal Mayer et al. (1995) model of dyadic trust, have been applied to contexts outside North America without a careful understanding of the distribution of social practices and everyday situations in such contexts. This chapter examines culture-specific workways as a starting point for understanding subordinates’ trust in their supervisors in collectivist cultures. Workways refer to the pattern of workplace beliefs, mental models and practices about what is true, good and efficient within …

Guanxi Versus Networking: Distinctive Configurations Of Affect- And Cognition-Based Trust In The Networks Of Chinese And American Managers, Roy Y. J. Chua, Michael W. Morris, Paul Ingram

Research Collection Lee Kong Chian School Of Business

This research investigates hypotheses about differences between Chinese and American managers in the configuration of trusting relationships within their professional networks. Consistent with hypotheses about Chinese familial collectivism, an egocentric network survey found that affect- and cognition-based trust were more intertwined for Chinese than for American managers. In addition, the effect of economic exchange on affect-based trust was more positive for Chinese than for Americans, whereas the effect of friendship was more positive for Americans than for Chinese. Finally, the extent to which a given relationship was highly embedded in ties to third parties increased cognition-based trust for Chinese but …

Guanxi Vs Networking: Distinctive Configurations Of Affect And Cognition Based Trust In The Networks Of Chinese Vs American Managers, Roy Chua, Michael W. Morris, Paul Ingram

Research Collection Lee Kong Chian School Of Business

This research investigates hypotheses about differences between Chinese and American managers in the configuration of trusting relationships within their professional networks. Consistent with hypotheses about Chinese familial collectivism, an egocentric network survey found that affect- and cognitionbased trust were more intertwined for Chinese than for American managers. In addition, the effect of economic exchange on affect-based trust was more positive for Chinese than for Americans, whereas the effect of friendship was more positive for Americans than for Chinese. Finally, the extent to which a given relationship was highly embedded in ties to third parties increased cognition-based trust for Chinese but …

How Fairness Garners Loyalty In The Pharmaceutical Supply Chain: Role Of Trust In The Wholesaler-Pharmacy Relationship, Thani Jambulingam, Ravi Kathuria, John R. Nevin

Business Faculty Articles and Research

Purpose

– The purpose of this paper is to understand how fairness garners loyalty by breeding trust in the pharmaceutical wholesaler‐pharmacy relationship. Specifically, the paper seeks to understand if the two dimensions of fairness – procedural and distributive – contribute differently in fostering the two types of trust – credibility and benevolence. The paper further aims to examine how the two dimensions of trust mediate the fairness‐loyalty relationship.

Design/methodology/approach

– Data from 156 retail pharmacies on their relationship with the pharmaceutical wholesalers are used to test the hypotheses. The mediation models are tested using the Barron and Kenny procedure.

Findings …

Dynamics Of Trust In Guanxi Networks, Roy Y. J. Chua, Michael W. Morris

Research Collection Lee Kong Chian School Of Business

Interpersonal trust is an important element of Chinese guanxi network. In this chapter, we examine Chinese guanxi network from a trust perspective. We adopt the distinction that trust could be built on either a socio-emotional basis (affect-based trust) or an instrumental basis (cognition-based trust) and use this lens to examine cultural differences in Chinese and Western social networks. Specifically, we will discuss (a) how the two dimensions of trust are related in the Chinese versus American context, and (b) how affect-based trust is associated with different forms of social exchange in Chinese versus American social networks. Because dyadic relationships are …

The Power Of Power In Supplier-Retailer Relationships, Nirmalya Kumar

Research Collection Lee Kong Chian School Of Business

In his interesting paper, Martin Hingley makes a few key observations about power and role accorded to it in the relationship marketing literature that has become increasingly popular over the past decade. Fundamentally, the article states that the relationship marketing view sees power as alien to effective relationships, as negating cooperation, and as the antithesis of trust. In other words, power in a relationship is ‘‘only viewed in a negative sense’’. Or, alternatively, power is viewed as not important enough to include in relationship marketing models because firms have moved from transactional exchanges to relational exchange. It is contended by …

Do Suppliers Benefit From Collaborative Relationships With Large Retailers? An Empirical Investigation Of Efficient Consumer Response Adoption, Daniel Corsten, Nirmalya Kumar

Research Collection Lee Kong Chian School Of Business

Collaborative manufacturer-retailer relationships based on efficient consumer response (ECR) have become ubiquitous over the past decade. Yet academic studies of ECR adoption and its impact on marketing relationships are relatively scarce. Inspired by the relational view of competitive advantage, the authors empirically investigate whether the extent to which suppliers of a major retailer adopt ECR has a beneficial impact on their outcomes. The results demonstrate that whereas ECR adoption has a positive impact on supplier economic performance and capability development, it also generates greater perceptions of negative inequity on the part of the supplier. However, retailer capabilities and supplier trust …

Reactions To Perceived Inequity In U.S. And Dutch Interorganizational Relationships, Lisa K. Scheer, Nirmalya Kumar, Jan-Benedict E. M. Steenkamp

Research Collection Lee Kong Chian School Of Business

In an empirical examination of inequity in interorganizational relationships, we found similarities and differences in Dutch and U.S. automobile dealers' reactions to inequity in their relationships with their automobile suppliers. As predicted by equity theory, both positive and negative inequity have detrimental effects on the reactions of Dutch firms. In contrast, U.S. firms do not react negatively to positive inequity; only negative inequity has deleterious effects.

Trust In Leadership: Meta-Analytic Findings And Implications For Research And Practice, Kurt T. Dirks, Donald L. Ferrin

Research Collection Lee Kong Chian School Of Business

In this study, the authors examined the findings and implications of the research on trust in leadership that has been conducted during the past 4 decades. First, the study provides estimates of the primary relationships between trust in leadership and key outcomes, antecedents, and correlates (k = 106). Second, the study explores how specifying the construct with alternative leadership referents (direct leaders vs. organizational leadership) and definitions (types of trust) results in systematically different relationships between trust in leadership and outcomes and antecedents. Direct leaders (e.g., supervisors) appear to be a particularly important referent of trust. Last, a theoretical framework …

Examining The Impact Of Destructive Acts In Marketing Channel Relationships, Jonathan D. Hibbard, Nirmalya Kumar, Lisa W. Stern

Research Collection Lee Kong Chian School Of Business

In virtually all marketing channel relationships, one of the parties eventually will engage in an action that another channel member considers potentially destructive for the relationship. How a particular channel member reacts to such an act has implications for the long-term viability and success of the relationship. On the basis of a large data set collected from both a focal supplier and its independent dealers, the authors classify dealers' responses to a supplier's destructive acts by extending the response 'typology of exit, voice, and loyalty, which is based on Hirschman's seminal writings on responses to decline in organizations and states. …

The Trusted General Manager And Unit Performance: Empirical Evidence Of A Competitive Advantage, James H. Davis, F. David Schoorman, Roger C. Mayer, Hwee Hoon Tan

Research Collection Lee Kong Chian School Of Business

Employee trust for the general manager is proposed as an internal organizational characteristic that provides a competitive advantage for the firm. This paper empirically examines the relationship between trust for a business unit's general manager and organizational performance. Trust was found to be significantly related to sales, profits and employee turnover in the restaurant industry. Managers who were either more or less trusted differed significantly in perceptions of their ability, benevolence and integrity.

Generalizations About Trust In Marketing Channel Relationships Using Meta-Analysis, Inge Geyskens, Jan-Benedict E. M. Steenkamp, Nirmalya Kumar

Research Collection Lee Kong Chian School Of Business

This meta-analysis examines the role of trust in marketing channels. First, the analysis of painwise relationships involving trust indicates that trust, on average, exhibits a robust and strong relationship with other channel relationship constructs under a wide range of different conditions. Next, we explored systematic patterns of variation in the correlations. The results demonstrate that the use of experiments, samples drawn from multiple industries, and US data tend to produce larger effects than the use of field studies, samples drawn from a single industry, and European data respectively do. Various other methodological characteristics of studies did not have significant effects. …

The Power Of Trust In Manufacturer-Retailer Relationships, Nirmalya Kumar

Research Collection Lee Kong Chian School Of Business

Manufacturers and retailers traditionally have seen each other as adversaries, but the benefits generated by trusting relationships between such old foes as Procter & Gamble Company and Wal-Mart Stores show that fear and intimidation may not be the most effective way for manufacturers and retailers to deal with each other after all. Studies of manufacturer-retailer relationships in a variety of industries reveal that exploiting power has three major drawbacks. it can come back to haunt a company if the balance of power changes; victims will ultimately seek ways to resist such exploitation; and working as partners allows retailers and manufacturers …

The Effects Of Trust And Interdependence On Relationship Commitment: A Trans-Atlantic Study, Inge Geyskens, Jan-Benedict E. M. Steenkamp, Lisa K. Scheer, Nirmalya Kumar

Research Collection Lee Kong Chian School Of Business

In recent years, interorganizational relationship management has become of paramount interest in marketing channels research. Marketing managers and researchers have identified mutual commitment among exchange partners in a marketing channel as central to successful relationship marketing and as key to producing significant benefits for firms. We consider two types of commitment that may characterize interfirm relationships. Affective commitment expresses the extent to which channel members like to maintain their relationship with specific partners. Calculative commitment measures the degree to which channel members experience the need to maintain a relationship. After conceptualizing commitment, we offer a set of hypotheses concerning the …

Vertrauen Und Chinesisches Wirtschaftshandeln In Singapur: Zur Kulturellen Und Sozialstrukturellen Bedingtheit Von Vertrauensbildung Und Kooperation In Chinesischen Geschäftsbeziehungen, Thomas Menkhoff

Research Collection Lee Kong Chian School Of Business

Based on in-depth interviews with Chinese merchant exporters in Singapore, the article explores why personal forms of trust (the Chinese translation is xinyong) are key elements in the complex web of business and associated social relationships.

Xinyong Or How To Trust Trust? Chinese Non-Contractual Business Relations And Social Structure :The Singapore Case, Thomas Menkhoff

Research Collection Lee Kong Chian School Of Business

One key for an understanding of Chinese economic behaviour in Singapore, Hong Kong or Malaysia is tmst - a term which has not been thoroughly dealt with in contemporary studies. With reference to the Chinese business community in Chinese-dominated Singapore and sociological concepts of trust, the article aims at analyzing the different levels of meaning of the trust mechanism (Chinese: xinyong) which is seen as essential lubricant in Chinese personalistic and non-contractual business relations. But trust in itself is no guarantee of cooperative behaviour. To enable interpersonal trust as precommitment and basis of local or international trading networks and commercial …