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

conference contribution
posted on 2007-01-01, 00:00 authored by Samson Ekanayake
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'.



West Lake International Conference on SMB (9th : 2007 : Hangzhou, China)


1 - 14


Zhejiang University of Technology


Hangzhou, China

Place of publication

Hangzhou, China

Start date


End date




Publication classification

E1 Full written paper - refereed; E Conference publication


R Chi

Title of proceedings

Ninth West Lake International Conference on SMB & Waitro Forum 2007 Proceedings