Management scholars often argue that trust plays a key role in economic exchange, especially when one side or the other is the subject of the risk of opportunistic behavior and incomplete monitoring, or when problems with moral hazard and asymmetric information arises. These conditions are almost always present in the case of corporate alliances and joint ventures. However, one attribute relationship - "relational quality" - is fundamental to the maintenance of good working conditions in the two party blocs, where the experience of the past and the shadow of the future play an important role. Building on the growing body of theory and practical exercises, the authors develop a framework for thinking about trust in a dynamic and practical terms. They also provide recommendations for managing relational quality in alliances as a strategy to increase the value. "Hide
Africa Arino, Jose de la Torre, Peter Smith Ring Source: California Management Review 24 pages. Publication Date: 01 Oct 2001. Prod. #: CMR217-PDF-ENG
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