Abstract
Whereas prior literature has long recognized the asymmetric nature of interfirm trust, under-developed is how it affects exchange performance. This study distinguishes between two aspects of interfirm trust: joint trust and trust asymmetry, and examines their performance impacts in buyer-supplier exchanges. We argue that whereas joint trust fosters exchange performance, buyer trust asymmetry (i.e., buyer trust minus supplier trust) decreases exchange performance. Moreover, we posit that with high levels of joint asset specificity, buyer asset specificity asymmetry, and supply market uncertainty, joint trust is more valuable, whereas buyer trust asymmetry becomes more negative in affecting exchange performance. The results of 235 buyer-supplier dyads over two time periods provide strong support to our propositions.
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