Trust and Commitment in the Inter-Organizational Relationship Life Cycle

Abstract

Purpose: The complex nature of inter-organizational relationships can be reflected in the number, level, and changes of their features. Focusing on two essential features of relationships – trust and commitment – we explore how they change in the particular phase of the relationship life cycle. Design/methodology/approach: Using the existing findings from a systematic literature review on IOR features, we aimed to qualitatively verify the changes over the time of two crucial relational characteristics – trust and commitment. Next, using a quantitative surveying, we tested the changeability of these two on a large-scale sample (786) from the software industry in Poland. Findings: With strong empirical support, we found the level of trust and commitment intensity as changing in a non-linear manner through the relationship life cycle. Logically, they both increase across the initial, development, and maintenance phases, while in the termination phase they decline. However, the results show that they can rise when the relationship is reactivated. Research limitations/implications: Due to the industry and cultural-specific limitations, comparative studies on several industries in cross-cultural conditions are recommended. We need further research on a holistic view of relationship characteristics and their changeability through the relationship life cycle. Furthermore, the validity of the cyclical treatment of relationship dynamics is worth reviewing. Originality/value: We investigate the significance of trust and commitment in inter-organizational relationship development using a mixed research approach. Additionally, as a methodological contribution, this article offers the operationalization and measurement of the above-mentioned features.