When can you trust "trust"? Calculative trust, relational trust, and supplier performance

Our research empirically assesses two distinct bases for trust: calculative trust, based on a structure of rewards and penalties, versus relational trust, a judgment anchored in past behavior and characterized by a shared identity. We find that calculative trust and relational trust positively influ...

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Bibliographic Details
Published in:Strategic management journal 2016-04, Vol.37 (4), p.724-741
Main Authors: Poppo, Laura, Zhou, Kevin Zheng, Li, Julie J.
Format: Article
Language:English
Subjects:
cooperative strategy
Organizational behavior
Organizational behaviour
Strategic management
supply chain management
transaction cost economics
Trust
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Summary:Our research empirically assesses two distinct bases for trust: calculative trust, based on a structure of rewards and penalties, versus relational trust, a judgment anchored in past behavior and characterized by a shared identity. We find that calculative trust and relational trust positively influence supplier performance, with calculative trust having a stronger association than relational trust. Yet, important boundary conditions exist. If buyers invest in supplier-specific assets or when supply side market uncertainty is high, relational trust, not calculative trust, is more strongly associated with supplier performance. In contrast, when behavioral uncertainty is high, calculative trust, not relational trust, relates more strongly to supplier performance. These results highlight the value of examining distinct forms of trust.
ISSN:0143-2095
1097-0266
DOI:10.1002/smj.2374