Factors that Influence Trust Conscious Management of Firms in China

This paper contributes to organizational behavior literature by exploring the influences of a control/trust duality on the deployment of relationship management capability. We peel back the influences of control and trust parameters to illustrate how the complementary effects of trust can enforce purposive actions on contractual provision, targeting and formalization that enhance of relationship management capabilities. Empirical evidence drawn from a survey of 320 Sino-foreign firms operating in China finds support for these complementary aspects of a control/trust duality. They rely on the extent to which level of relationship management capability is exercised to attain the improved organizational development. The results, based upon survey data, suggest that managers should invest in relationship management capabilities to better balance control and trust benefits over the engagement of their purpose development actions as these will lead to higher levels of performance. Finally, we find that trust enhances relationship management capabilities through the pursuit of contractual control and the targeting of their independent effects.