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The Determinants of Trust in Supplier-automaker Relationships in the U.S., Japan, and Korea
Transcript of The Determinants of Trust in Supplier-automaker Relationships in the U.S., Japan, and Korea
Trust  lowers trasaction costs.
 facilitates investments in relation-specific assets.
 leads to superior information sharing routines.
Determinant of Trust
Hyphothesis 1. Length
Hyphothesis 2. Face to Face
Hyphothesis 3. Continuity
Hyphothesis 4. Assistance
Hyphothesis 5. Stock
Model : TRUST = a + b1 Length + b2 Face
+ b3 Continuity + b4 Assistance + b5 Stock
Trust may be able to lower transaction costs, but buyers must expand resources in providing assistance to suppliers and there is an opportunity cost associated with maintaining long term. It's a dilemma. Which do you choose between Trust and Transaction costs?
Do you think that just only "embeddedness theory" is able to discourage malfeasance in the social network?