Content area
Abstract
Despite the significance of trust in organisational exchanges, research on trust still has two main limitations given the intrinsic deficiencies of trust in interorganisational relationships. To develop the concept of interorganisational reliance, this study uses an argument proposed in the literature and validates the distinct importance of reliance vis-à -vis trust in business relationships. This study adopts both qualitative and quantitative techniques to address the research questions. First, a total of 20 interviews with company buyers were conducted to understand reliance and thereby develop a new scale to measure this construct. To explore the roles of trust, reliance and commitment in business relationships, a sample of 636 responses from 404 firms was collected through a survey in the UK construction industry. The analysis using structural equation modelling substantiates the positive effects of trust and affective commitment in social exchanges, and identifies the positive effects of reliance and behavioural commitment on economic satisfaction and long-term orientation. However, the individual-level constructs of trust and affective commitment do not have direct significant effects on long-term orientation. Findings support reliance as a necessary and sufficient condition for the development of sustainable business relationships, indicating that reliance is a more central theme in business relationships.