The Influence Of Initial Trust Between Organizations On Knowledge Sharing

In the era of Internet globalization, more and more enterprises seek collaborations with new partners by the help of a third party to achieve efficient open innovation in the expanding landscape. Lacking of sufficient direct information about potential partners, trustors tend to use the credibility of a third party to supplement the image schema and make a judgment for trustees. In such business context, the establishment of the trust is no longer dyadic relation level, but a complex Triadic relationship. Based on Triadic trust transitivity, this research explore initial trust formation mechanism which emergence from no directly related organizations by the Intervention of a third party, and the effect of which on knowledge sharing. It is suggested that research would fill the theoretic gap of trust between bilateral perspective and the network theory at the initial phase of trust spectrum. The holistic framework of our research includes three sub-studies:According to the difference of the reputation of third party and the bilateral relations, the first sub study investigates the formation mode of initial trust by exploratory case studies in three manufacturing enterprises. Case studies provide insights that the social reputation of third parties can transmit trust effectively, and the two -way relationships which maintain with trustors and trustees have different effect on the initial goodwill or ability trust. Furthermore, the different level of the two dimensions trust will impact on two types of knowledge sharing differently, four assumptions proposition about initial trust are put forward for follow-up study which provide the basis of the practical reality for next study.The second sub-study proposes hypotheses and empirical test on the basis of the first sub-study to explore formation mechanism of initial trust between enterprises bridged by a third party. A set of questionnaires was developed in order to examine in initial trust in triadic business networks. Hierarchical linear regression analysis is used to test complex influence of three variables (the third party social status, the relationships between the third party and two sides of potential partners) on initial trust based on 259 questionnaires. The hierarchical approach is appropriate when analyzing multiplicative terms in regression analysis. In each step of the hierarchical analysis, the next higher order of interaction is added (two-way and three-way interactions, respectively), and the interaction effect of significance are evaluated.In the third sub study, a structural equation model is constructed to analysis the different effect of two dimensions initial trust on tacit and explicit knowledge sharing respectively. Although the behavior of knowledge is motivated by trust, multi-dimensions of trust will produce a distinct pattern on that. Environment variables are introduced to inspect the dynamic environment influence on the initial trust and knowledge sharing.The main conclusions and innovation points in this research are summarized as follows:(1) Exploring the mechanism of initial trust forming between the potential partners by intermediary of a third party to enrich the trust and knowledge management theory in the front end of trust spectrum.Many famous scholars (such as Axelrod,1984; Coleman,1990; Williamson,1985) took the trust as a cost-benefit calculation by rational actors in the heart, this research extended this theory by exploring black-box in which initial trust formed under the intervention of a third party. It is suggested that the initial trust bridged by a third party means to calculate the social capitals of actors for initial psychological judgment. Namely:emergence of trust is to evaluate the three-way social relations.(2) Investigating the different influence of the third parties and their bilateral relations (turstors and trustees) the inter-organizational initial trust from the three-way interaction perspective. Results of this study suggest that the attributes of the third parties (social reputation and status) has a positive effect on trust transmission. That is to say, the higher social status of a third party, the higher level of initial trust can be promoted. In addition, the closely relationship between a third party and trustors will significantly affect the initial benevolence trust, but has no significant effect on the initial ability trust. the closely relationship between a third party and trustees will significantly affect the initial ability trust on, but had no significant effect on the initial benevolence trust. Furthermore, three-way interaction are statically significant, especially for the initial benevolence trust, which means the attribute of third parties and their dyadic relationships with both sides have an intensive effect on initial trust.(3) This study contributes empirical data to the predominantly theoretical literature on trust and knowledge sharing in general. It is, to a certain extent, common sense that trust has a positive impact on knowledge sharing. However, this paper takes an important step forward by detailing how initial trust at cooperation influences the knowledge sharing process. Results of this study suggest that each of the two forms of trust has a distinct pattern of association to the complex knowledge sharing. Although initial benevolence trust can significantly affect the explicit knowledge and tacit knowledge sharing, initial ability trust mainly promote the explicit knowledge sharing, and little for tacit knowledge sharing. These anti-intuitive results reflect the specific characteristics in the initial business stage. At the beginning of the cooperation, the two sides maybe appreciate each other's capability, but uncertainties of the other's integrity and sincerity still exist, which leads to the reservations for tacit knowledge. Finally moderating effect of Environment turbulence for initial trust and knowledge sharing is examined, and the result is not significant, which indicated the essence of trust in cooperation is to made generous response to the challenge of external environment.