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The Determinants of Trust in Supplier-automaker Relationships in the U.S., Japan, and Korea

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by

Brad Park

on 4 July 2013

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Transcript of The Determinants of Trust in Supplier-automaker Relationships in the U.S., Japan, and Korea

The determinants of Trust in Supplier-automaker Relationships in the U.S., Japan, and Korea
Trust [1] lowers trasaction costs.

[2] facilitates investments in relation-specific assets.

[3] leads to superior information sharing routines.
Introduce
Previous
Literature
Defining Trust
Investments
Automobile
Reliability
Fairness
Goodwill


"Goodwill Trust"
Components
Uncertainty
Trust
Social/Embeddedness Perspective
Economic
Perspective
Process-based Perspective
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
Research Methods
Comments
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?
Full transcript