Understanding the factors contributing to inter-partner trust in joint ventures

Ekanayake, Samson 2007, Understanding the factors contributing to inter-partner trust in joint ventures, in Ninth West Lake International Conference on SMB & Waitro Forum 2007 Proceedings, Zhejiang University of Technology, Hangzhou, China, pp. 1-14.

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Title Understanding the factors contributing to inter-partner trust in joint ventures
Author(s) Ekanayake, Samson
Conference name West Lake International Conference on SMB (9th : 2007 : Hangzhou, China)
Conference location Hangzhou, China
Conference dates 21-23 October 2007
Title of proceedings Ninth West Lake International Conference on SMB & Waitro Forum 2007 Proceedings
Editor(s) Chi, Renyong
Publication date 2007
Conference series West Lake International Conference on Small and Medium Business
Start page 1
End page 14
Publisher Zhejiang University of Technology
Place of publication Hangzhou, China
Keyword(s) international joint ventures
inter-partner trust
formation of trust
rational trust
Summary Forming an international joint venture (IJV) with a local (Chinese) partner is one of the popular ways available for an overseas investor to enter into small and medium business sectors in China. A joint venture is commonly viewed as a cooperative, rather than a competitive, business relationship between two or more partners. Interpartner trust is widely acknowledged as a key prerequisite for genuine cooperation between joint venture partners. Although the importance of trust in the context of joint ventures is well recognized, the question of how interpartner trust is formed has received only scant attention in academic as well as professional literatures. Drawing from diverse academic literature bearing on the formation of trust between partner firms, this paper explores the factors that may contribute to inter-partner trust in the context of joint ventures. The primary argument in this paper is that trust between IJV partners is determined by observable and objective social, economic and structural factors. In other words, it is argued that interpartner trust is rational and it does not require a 'leap of faith'.
Language eng
Field of Research 150308 International Business
HERDC Research category E1 Full written paper - refereed
ERA Research output type E Conference publication
Persistent URL http://hdl.handle.net/10536/DRO/DU:30008090

Document type: Conference Paper
Collection: School of Accounting, Economics and Finance
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