Research Project ”STROI-Network”

P 5: Customer Perspective and

Marketing

Building Trust in Counterweight to Risks in Inter-Organisational Relations

of Business Networks in Russia

Marina Weck, HAMK

Research Objectives

The overall aim of the research is to understand deeper the trust development process as a counterweight to the potential risks involved in inter-organisational relations of business networks in the Russian market.

The research comprises the following specific objectives: to identify what are the risks in the inter-organisational

relations of business networks, to explore the relationship between trust and identified

risks, and to determine what are the preconditions and leaders’

actions necessary for trust-building.

Research Concept Overview

NetworkingNetworkingInter-

Organisational

Relations

Inter-Organisationa

lRelations R

elat

ion-

ship

Rel

atio

n-sh

ip

Trust-BuildingProcess

Trust-BuildingProcess

TrustTrust

RiskRisk

The context for this research is the distinctive features of trust development process in inter-organisational relations of business networks in Russia

Research Outcome: Model of Trust-Building Process

Research objectives aim at developing a model that outlines the trust-building process along the key stages (e.g. Blomqvist, 1982) of inter-organisational relationship development.

This model will illustrate the reality providing guidelines for building trust in counterweight to risks involved in IORs of business networks in the Russian market.

AwarenessAwareness Attraction Attraction InteractionInteraction Agreement on partnershipAgreement on partnership

RISK TRUST

Identified risks

…………...

Identified risks

…………...

Identified risks

…………...

Identified risks

…………...

Preconditions …………..Actions…………..

Trust-Building Process Trust-Building Process

Process Stages of Inter-Organisational Relationship Development

Internal Risks

Trust Preconditions and Building Actions

Preconditions …………..Actions…………..

Preconditions …………..Actions…………..

Preconditions …………..Actions…………..

Model of Trust-Building Process

Classifying Business Network Partner

Low

High

Low High

Trust

Perceived riskin networking with partner

Related Theories

The main theoretical concepts that can be applied to the research:

Network and Marketing Relationships Theories Interaction Theory (Håkansson, 1982) The Commitment-Trust Theory (Morgan and Hunt, 1994) Transaction Cost Economics Theory (Williamson, 1975) Agency Theory (Eisenhardt, 1989)

Research Design

PHASE ONELiterature ReviewPHASE ONE

Literature Review

PHASE TWOInternal Risks of Business Networks (RQ 1)• Qualitative Analysis• Pilot Study (RQ 1 and RQ 2)

PHASE TWOInternal Risks of Business Networks (RQ 1)• Qualitative Analysis• Pilot Study (RQ 1 and RQ 2)

PHASE THREERelationship between Trust and Risk (RQ 2) Trust-Bilding Process (RQ 3)• Qualitative Analysis

PHASE THREERelationship between Trust and Risk (RQ 2) Trust-Bilding Process (RQ 3)• Qualitative Analysis

ValidationHypotheses building and testing

Conceptualmodel

development

The research structure is divided into three phases as follows:

Research Methodology

RQ 1 Relational risks of business networkRQ 1 Relational risks of business network

RQ 3 Trust-building processRQ 3 Trust-building process

RQ 2 Relationship between trust and riskRQ 2 Relationship between trust and risk

Pilot StudyPilot Study

Research Questions:

RQ 1 What are the risks involved in the inter-organisational relations of business networks in Russia?RQ 2 What is the relationship between trust and identified risks? RQ 3 What are the preconditions and leaders’ actions necessary for trust- building in inter-organisational relations in the Russian market?

Qualitative AnalysisQualitative Analysis

Elite Interviews

Elite Interviews

Semi-structured Interviews

Semi-structured Interviews

Research questions Analysis Instruments