Exploring trust vis‐à‐vis reliance in business relationships

Abstract

PurposeTo overcome the limitations of applying trust in interorganizational relationships, this paper aims to investigate the significant role of interorganizational reliance in business relationships and develop an original scale to measure this new construct.Design/methodology/approachA total of 20 in‐depth interviews with buying firms were conducted in the UK construction industry. The contents of the interviews were analyzed with NVivo to examine the rational standards underlying the buyer‐supplier exchange relationship.FindingsTrust is a relevant but not in itself a sufficient condition for the development and sustaining of buyer‐supplier relationships. The objective rationality requires that business relationships are centred on organizational needs and benefits which necessitate the rational standard of interorganizational reliance. Reliance remains to be central in business relationships despite low or lack of trust.Research limitations/implicationsFocusing on the construction industry, this paper evaluates the current status of trust and develops an understanding of interorganizational reliance in business relationships.Practical implicationsThe generic use of the term of trust has obscured the meaning and significance of reliance in business relationships. Marketing researchers should put necessary attention and efforts to explore the distinct features and effects of reliance in exchange relationships between organizations.Originality/valueThe paper empirically examines the deficiencies in trust, and demonstrates the significance of reliance in buyer‐supplier relationships. An original measure for the new construct of reliance is also developed through interviews with key informants.