The Effect of Trust on Performance in the Case of Finnish International Joint Ventures - Focus on Finnish-Asian Joint Ventures
Hartikainen, Heli (2004)
Kuvaus
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Tiivistelmä
The purpose of this research is to study how trust affects performance of Finnish international joint ventures (IJVs). Previous studies relating trust and performance, especially in international joint venture context, are rare. Trust has started to emerge more in recent business studies, but the concept of trust is still rather vague and only few studies place trust as a central factor.
In theoretical part of the study concept of trust is studied by identifying dimensions, central elements and different forms of trust. Also different trust building processes and the impact of national culture on development of trust are studied. Concept of IJV performance is studied by reviewing different approaches of IJV performance measurement. Outcomes and role of trust are viewed to discover how trust affects different inputs and outputs of IJVs.
Empirical part of the study was conducted with the help of two questionnaires. Four Finnish-Asian manufacturing joint ventures, located in China and Indonesia, were chosen for case companies. Based on empirical findings, the level and form of trust in IJV relationships depend on relationship characteristics and the way trust affects performance depends on unique nature of each relationship. Uncertainty, control and opportunistic behavior are central elements that are interdependent with trust. National cultural differences affect development of trust more than possible similarities, but cultural impact is not clear. Trust was shown to affect chosen performance indicators trough inputs that reflect quality of relationship, however, findings support even stronger direct reciprocal effect between trust and performance when performance is discussed in general level. Still, further conceptualizing of trust is needed. At the end of the study, a model that combines previous studies and major empirical findings is presented, showing the causal relation between trust, performance and other central factors.
In theoretical part of the study concept of trust is studied by identifying dimensions, central elements and different forms of trust. Also different trust building processes and the impact of national culture on development of trust are studied. Concept of IJV performance is studied by reviewing different approaches of IJV performance measurement. Outcomes and role of trust are viewed to discover how trust affects different inputs and outputs of IJVs.
Empirical part of the study was conducted with the help of two questionnaires. Four Finnish-Asian manufacturing joint ventures, located in China and Indonesia, were chosen for case companies. Based on empirical findings, the level and form of trust in IJV relationships depend on relationship characteristics and the way trust affects performance depends on unique nature of each relationship. Uncertainty, control and opportunistic behavior are central elements that are interdependent with trust. National cultural differences affect development of trust more than possible similarities, but cultural impact is not clear. Trust was shown to affect chosen performance indicators trough inputs that reflect quality of relationship, however, findings support even stronger direct reciprocal effect between trust and performance when performance is discussed in general level. Still, further conceptualizing of trust is needed. At the end of the study, a model that combines previous studies and major empirical findings is presented, showing the causal relation between trust, performance and other central factors.