Trust and Commitment in Collaborative Business Relationships involving New Zealand Firms

Nitha Palakshappa, Massey University  
Mary Ellen Gordon, Market Truths Ltd

Abstract: In this paper, we provide an exploration of how commitment and trust operate within specific collaborative business relationships using the antecedents and consequences of these variables as discussed by Morgan and Hunt (1994). We do this using fourteen case studies of collaborative business relationships involving at least one New Zealand (NZ) partner. Key findings suggest that interpersonal, as well as inter-organisational trust and commitment, are important to the success of collaborative business relationships. Managers considering entry into collaborative relationships should consider how they and their colleagues interact with their counterparts at prospective partner organisations as well as the strategic fit between organisations.