Research on relationship between goodwill trust, competence trust and alliance performance — Based on analysis on the moderating role of potential competition between partners

Abstract

The impact of trust on alliance performance is still controversial. We examine the effect of trust on alliance performance, building on classifying the trust into goodwill trust and competence trust. In particular, we investigate how potential competition between partners moderates the trustperformance relationship. In data from 68 alliances, we argue that: goodwill trust has a positive effect on alliance performance; low level of competence trust has a positive effect on alliance performance, but high level of competence trust has a negative effect on alliance performance; the relationship between goodwill trust, competence trust and alliance performance is stronger in the alliance under higher potential competition between partners and weaker under lower potential competition.