International Journal of Human-Computer Studies
Enabling information sharing within organizations
Information Technology and Management
Organizational Science and the NSF: Funding for Mutual Benefit
Organization Science
Relational Antecedents of Information Flow Integration for Supply Chain Coordination
Journal of Management Information Systems
An integrative model of trust on IT outsourcing: Examining a bilateral perspective
Information Systems Frontiers
A social network perspective on virtual organisations: social structure as enabler and barrier
International Journal of Networking and Virtual Organisations
Journal of Management Information Systems
Fostering the determinants of knowledge sharing in professional virtual communities
Computers in Human Behavior
The role of soft information in trust building: evidence from online social lending
TRUST'10 Proceedings of the 3rd international conference on Trust and trustworthy computing
Successful implementation of collaborative product commerce: An organizational fit perspective
Decision Support Systems
An empirical investigation of net-enabled business value
MIS Quarterly
International Journal of Internet Technology and Secured Transactions
Governance in Multilateral R&D Alliances
Organization Science
IT Offshoring: Trust Views from Client and Vendor Perspectives
International Journal of Information Technology Project Management
The Key Role of Interfaces in IT Outsourcing Relationships
International Journal of Information Technologies and Systems Approach
International Journal of Risk and Contingency Management
Computers and Industrial Engineering
Interorganizational information systems visibility and supply chain performance
International Journal of Information Management: The Journal for Information Professionals
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In this paper we investigate the relationship between supplier trust in the buyer and transaction costs and information sharing in a sample of 344 supplier-automaker exchange relationships in the United States, Japan, and Korea. Our findings indicate that perceived trustworthiness reduces transaction costs and is correlated with greater information sharing in supplier-buyer relationships. Moreover, the findings suggest that the value created for transactors, in terms of lower transaction costs, may be substantial. In particular, we found that the least-trusted automaker spent significantly more of its face-to-face interaction time with suppliers on contracting and haggling when compared to the most trusted automaker. This translated into procurement (transaction) costs that were five times higher for the least trusted automaker. Finally, we argue that trust is unique as a governance mechanism because it not only minimizes transaction costs, but also has a mutually causal relationship with information sharing, which also creates value in the exchange relationship. Other governance mechanisms (e.g., contracts, financial hostages) are necessary costs incurred to prevent opportunistic behavior, but do not create value beyond transaction cost minimization. Our findings provide empirical evidence that trustworthiness lowers transaction costs and may be an important source of competitive advantage.