Trust and Commitment: Intangible Drivers of Interorganizational Performance
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Published:2006
Jane Cote, Claire K. Latham, 2006. "Trust and Commitment: Intangible Drivers of Interorganizational Performance", Advances in Management Accounting, Marc J. Epstein, John Y. Lee
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Non-traditional performance indicators have gained broad acceptance in recent years. We continue this discussion and contribute to the knowledge base by employing trust and commitment as two critical intangibles existing between organizations that directly and indirectly influence performance metrics. Each interorganizational contact creates a transactional history that influences cumulative perceptions of trust, that then guide outcome behavior. Using an interdisciplinary foundation, we test a causal model where formal and informal interorganizational relationship structures impact trust and commitment, which then stimulates performance outcomes. The healthcare industry provides the field context where we empirically test our model. A survey was administered to physician practice professionals to measure the theoretical dimensions of the dyad's relationship structure, including antecedents to the mediating variables, trust and commitment, and the resulting outcome constructs. Results demonstrate that relationship dynamics are vital drivers of tangible outcomes. Trust and commitment emerge as variables to be explicitly managed to improve performance.
