Diven Vithlani – N0190420

TRUST
Asia-Pacific

COUNTRIES IN QUESTION:

AMERICA &

CHINA
 contents
rust

Definiti
on, theory

hina & The US

Compari
son, Trust styles

ow Business is Affected

Theory

onclusion

Summar
y, Question & Answer
 What is trust?

efinitions: Trust has been defined as the belief that a party's word or promise is
reliable and that a party will fulfill his/her obligations in an exchange relationship.
(Schurr and Ozanne, 1985, p. 940)

Trust is] the firm's belief that another company will perform actions that will result
in positive outcomes for the firm, as well as not take unexpected actions that would
result in negative outcomes for the firm (Anderson and Narus, 1990, p. 45).
 What is trust (2)

A common view among philosophers is that to say that a party

displays trust in another means that they have made themselves
vulnerable to that other party's behaviour. In other words, if you trust
somebody then you are accepting that while it is a theoretical
possibility you do not believe it is a realistic probability that they
will act in a manner that would disadvantage you.” KEITH J. BLOIS
 The need for trust

nternational trading

DI

overnments

oint Ventures
 Foundations of trust

rust at the micro level reflects our experience in dealing with other
people in transactions.

rust at the macro level–or at least as we have measured it, ‘is

something other than micro trust (Beugelsdijk, 2006, pp. 372, 382)
 Types of trust

ompanion trust

ompetence trust

ommitment trust

alulative trust

nowledge based trust

rediction based trust (Jones & George 1998)

Types of trust compared
 Ways to build and sustain trust

apport  Competency

onesty  Mutuality

incerity  Integrity

espect for Self and Others  Reliability

penness
 Admission
ecovery
(Business-Wisdom)
Trust in industries
Who they trust?
Hofested model china & USA
 Individualist vs collectivist trust
AMERICA CHINA

•Very easy to trust •Takes time to trust

•Shorter time scale to business •Longer to do business

•More problems arise
•Less problems

(Lenard Huff and Lane Kelley

2003)
 guanxi

akes time

oney

fter trust is gained, anything is possible

 Conclusion

n conclusion you can see by the information provided that the Chinese take
longer to trust companies and individuals compared to their American counter
parts.

o not consider depths of trust

hat happens if trust is betrayed?

Any questions?
 references
CHURR, P. H. and OZANNE, J. L. (1985). `Influence on exchange processes: buyer's perceptions of a seller's trustworthiness and bargaining
toughness'. Journal of Consumer Research, 11, 939±53.

NDERSON, J. C. and NARUS, J. A. (1990). `A model of distributor firm and manufacturing firm working partnerships'. Journal of Marketing,
54 (January), 42±58.

EITH J. BLOIS (1990). ‘TRUST IN BUSINESS TO BUSINESS RELATIONSHIPS: AN EVALUATION OF ITS STATUS’ Journal of
Management Studies 36:2 March

eugelsdijk, S. 2006. A note on the theory and measurement of trust in explaining differences in economic growth, Cambridge Journal of
Economics, vol. 30, 371–87

ones, G. R., J. M. George. 1998. The experience and evolution of trust: Implications for cooperation and teamwork. Acad. Management Rev.
23(3) 531-546.

arvy Simkovits, 11 ways to build and sustain trust in doing businesshttp://www.business-wisdom.com/articles/ArtclElevenWays.html [Accessed]
1/3/11

uff, L. Kelley, L. 2003. Levels of Organizational Trust in Individualist versus Collectivist Societies: A Seven-Nation Study Organization Science,
Vol. 14, No. 1 (Jan. - Feb., 2003), pp. 81-90