The emergence of perceived calculative trust and distrust: the case of a small Finnish pharmaceutical company
by Juha Tuunainen
International Journal of Technoentrepreneurship (IJTE), Vol. 2, No. 3/4, 2011

Abstract: The purpose of this paper is to enhance understanding of the calculative bases of trust and distrust during the negotiation phase of new commercial collaboration relationships. Whereas the existing literature mostly offers quantitative snapshot pictures of inter-firm trust formation, this research followed a process-oriented approach. Analysis of interview and documentary data obtained from two sets of inter-firm collaborative negotiations showed that calculus-based perceived trustworthiness between firms arises from the presence of the following conditions: 1) the partner's interest in getting involved in the negotiated project; 2) its behavioural consistency and transparency during the collaboration negotiations; 3) its technical competence in carrying out the project duties; 4) its firm financial standing; 5) its compliance with the suggested formal control methods. Distrust, in turn, ensues from the lack of these. These sources of perceived calculative trust and distrust provide the prospective partners with rough practical estimates of how the forthcoming partnership might eventually work out, in other words, they form the bedrock of a new social institution, the collaborative network.

Online publication date: Tue, 31-Mar-2015

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