The relation between trust and transaction costs in interorganizational relationships

Carlos Henrique Mascarenhas de Andrade, Sérgio Fernando Loureiro Rezende, Márcio Antônio Salvato and Patrícia Bernardes

RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), 2011, vol. 15, issue 4, 608-630

Abstract: Based on the assumption that trust is a mechanism of relational governance, which can influence the costs associated with the formation, development and maintenance of interorganizational relationships, in this article one aims to test the relation between trust and transaction costs in these relationships. Based on the literature on trust and on transaction costs, one puts forward four new hypotheses, which suggest a negative relation between trust and costs of information, of negotiation, of implementation and of monitoring in interorganizational relationships. These hypotheses were tested using multiple regression analysis in a quantitative case study where the buyer is illustrated by an automaker and its suppliers are represented by a sample of the major ones. The results suggest that there are significant, yet negative relations between trust and costs of negotiation and of monitoring. The relations between trust and costs of information and of implementation, in turn, are not statistically significant. We believe that these results represent a more-fined grained understanding of the relation between trust and transaction costs in interorganizational relationships to the degree that it is suggested that the four types of transaction costs are not perfectly correlated.

Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
https://rac.anpad.org.br/index.php/rac/article/view/868/865 (text/html)
https://rac.anpad.org.br/index.php/rac/article/download/868/865 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:abg:anprac:v:15:y:2011:i:4:868

Access Statistics for this article

RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration) is currently edited by Marcelo de Souza Bispo

More articles in RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration) from ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração
Bibliographic data for series maintained by Information Technology of ANPAD ().