Search

Purpose:This article is to test the proposition that the 3 conceptually related constructs of trust, reliance, and dependence are distinct from each other and to test the proposition that the quality of business relationships can be measured with a formative index incorporating trust and reliance. Methodology/Approach:The authors' propositions are tested with a survey sample of 221 firms in the U.K. construction industry. Exploratory and confirmatory factor analyses are used to analyze the survey data. Findings:The independence of the 3 focal constructs of trust, reliance, and dependence is confirmed. The formative index is found suitable for evaluating the level of relationship quality in which reliance carries more significant weight than trust. Research Implications:The separation of the overall construct of “trust” into trust at interpersonal level and reliance at interorganizational level, as found in this study, overcomes the problem existing in past studies that researchers rarely specify at which level trust operates. The clear conceptual distinction between reliance and dependence as found in this study implies that although both operate at the organizational level, they do not have overlapping boundaries. The finding that reliance is a more important impact factor than trust in constructing the formative index supports the notions that reliance is a necessary and sufficient condition for developing sustainable business relationships, and trust is an insufficient condition to sustain an ongoing business relationship. Practical Implications:Reliance sets the keynote of the business relationship. In contrast, trust as the interpersonal variable only acts as the facilitator to create a favorable social environment. Nevertheless, both trust and reliance have a significant and positive weight in the relationship quality index formed. This means that a business relationship with high levels of both trust and reliance is particularly resilient and stable and is the most successful and desirable one which is frequently oriented toward the long run. Originality/Value/Contribution:The confirmation of the difference between trust and reliance makes an important contribution to the study of trust in business to business marketing by showing that what has traditionally been treated as theoverall construct of trust can and should be regarded as being made up of two separate constructs: interpersonal trust and interorganizational reliance. The difference between reliance and dependence as an additional finding makes another important contribution by providing conceptual clarity of the two constructs and confirming that there is no overlapping boundary between them. The formative index and the relative importance of its components are another important contribution of this study. [ABSTRACT FROM AUTHOR]

Purpose – There is conflicting evidence of the extent to which business relationships in the UK construction industry are based on trust between closely collaborating parties or alternatively are more adversarial in nature, based on dependence between the parties. This study seeks to provide empirical evidence about the effects of trust and dependence in business relationships in this industry. Design/methodology/approach – A large quantitative survey was conducted with buying firms, resulting in a total of 636 usable responses from 404 firms to test a model using structural equation modelling. The authors test the extent to which trust and dependence act as antecedents to four dimensions identified from the literature as being important determinants of relationship quality: commitment, communication, satisfaction, and long-term orientation. Findings – The results provide good evidence for the hypotheses in the authors' model: relational characteristics associated with relationship quality are mainly driven by the interpersonal trust between buyers and their suppliers. Interorganisational dependence, evidence of more adversarial relationships, has either no direct impact on relational consequences or at best far less impact than trust. Originality/value – This research substantiates trust as a key factor influencing relational characteristics associated with relationship quality in the UK construction industry. The findings confirm the earlier work in this industry that trust is an important strategic tool in supplier relationship management. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to investigate the levels of trust and reliance in different international business markets. The paper aims to obtain empirical evidence regarding the importance of relational aspects (trust) vis-à-vis organisational ones (reliance) for building long-term business relationships. Design/methodology/approach – This is an exploratory study to examine trust and reliance in the manufacturing and construction industries of four countries: UK, India, Pakistan, and Poland. Statistical analysis is based on a data sample of 501 responses collected through a survey of buying and selling relationships. Findings – Although varying across countries, stable relationships with high levels of both trust and reliance exist widely in business markets. Exclusively trust-based business relationships, i.e. those which are mainly driven by individual-level aspects, are very rare. However, both trust and reliance are significant for building relationships with long-term perspectives. Practical implications – Managers in firms who want to build advantageous and sustainable business relationships need to be able to discern the difference between trust in people on the one hand, and reliance on the partner firms on the other. This research shows that to maintain sustainable relationships, firms should not only focus their relational capabilities on enhancing reliance aspects with their business partners, but also aim to build good levels of trust in the interaction. [ABSTRACT FROM AUTHOR]