Abstract

The field study presented in the article illustrates how trust is operationalized in business practices. It shows that deciding to engage and remain in collaborative relations characterized by high uncertainty is influenced by reciprocal interactions among (i) transactional and relational attributes, (ii) organizational and environmental characteristics, (iii) governance structures and processes, and (iv) acts of suspension. Our framework demonstrates that exchange partners sometimes need to suspend (i.e., accept and embrace) risks in a non-calculative manner. Thus, building on a qualitative study of collaborative software development projects, this paper calls for the dynamic treatment of governance mechanisms in interorganizational relationships.

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