Performance outcomes of interorganizational trust in buyer-seller relationships: the case of the relationship between a pharmacy and a drug wholesaler

Şengün, Ayşe Elif
This study examines the performance outcomes of interorganizational trust using both qualitative and quantitative methods. Using qualitative data from four informants and drawing on the literature on trust, we define interorganizational trust and derive a model of its outcomes. Regression analysis results indicate that trust is negatively related to transaction costs and positively related to cooperation, conflict resolution, satisfaction, and risk taking tendency. Dependence has a moderating effect on trust while predicting satisfaction. Confirmatory factor analysis revealed four trust components: goodwill trust, competence trust, contractual trust, and distrust. Further exploratory analyses between trust components and trust outcomes indicate that distrust is not a mere opposite of trust, but is a distinct component of it. Goodwill trust, by itself, is not sufficient for the reduction in transaction costs; it must be supplemented by the reliability and ability of the other party in the exchange relationship to fulfill obligations. Competence trust alone is not sufficient for better conflict resolution due to the divergence in the expectations of the exchange partners. Only goodwill trust affects the tendency towards risk taking, since it reduces the perceived potential for opportunistic behavior. As a result of this study, the concept of trust and its outcomes were investigated in the Turkish context, different components of trust were identified, and these components were linked to the outcomes of trust. In addition, risk taking tendency was tested as an outcome of trust, which is an important contribution to the research in this field.


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Citation Formats
A. E. Şengün, “Performance outcomes of interorganizational trust in buyer-seller relationships: the case of the relationship between a pharmacy and a drug wholesaler,” Ph.D. - Doctoral Program, Middle East Technical University, 2005.