Blackwell Reference Online

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Trust is viewed as an important influence affecting the effectiveness of inter‐organizational relationships ( see customer relationship management ; international strategic alliances ; relationship marketing ) because, in order to make commitments through investment in joint projects, sharing information, or engaging in other forms of partnership ( see licensing ), organizations need to be assured that partners will not engage in opportunistic behavior. Indeed, “Relationship marketing is built on the foundation of trust” ( Berry, 1995: 242 ). Opportunistic behavior can be ameliorated by formal contracts and social controls ( Parkhe, 1993 ), but not eliminated. Blois (1999) explores different definitions of trust and suggests that “if you trust somebody, then you are accepting that while it is a theoretical possibility , you do not believe it is a realistic probability that they will act in a manner that would disadvantage you” (p. 204). He suggests that trust is specific, person‐embodied, and as such the focus is on truthworthiness rather than on trust; furthermore, it implies an expectation that, given unexpected events, the other party will deal with them in a way that does not disadvantage the relationship. Trust can be developed over time as organizations obtain experience of the behavior of those with whom they have been in contact, or in the case of strategic alliances ... log in or subscribe to read full text