Trust Climate in International Business-To-Business E-Negotiations: Antecedents, Processes, and Outcomes

Abstract

ABSTRACT Purpose – This article explores the processes, antecedents, and outcome of the concept of trust climate in online negotiations through synchronous video conferencing between international buyers and sellers. Design/methodology/approach – By grounding the concept of trust climate in three complementary theories, and by drawing on the findings of prior research, this study specifies the concept and constructs a conceptual model (four propositions and moderating variables) for understanding trust climate’s processes, antecedents and outcome. Findings – Our proposal asserts that trust climate can result from e-negotiation interactions. A definition of trust climate developed from our research is presented, and it is differentiated from related concepts. Models of trust development indicate that trust develops gradually over time. Building a trust climate in the context of e-negotiation is more a matter of action and reaction in real-time interaction, rather than relationship evolution over time. Research limitations/implications – This research differentiates trust climate from similar concepts, adding theoretical insights toward a better understanding of this concept in online negotiation. The next step is empirical testing. Practical implications – The concept of trust climate should help managers better understand its development and provide valuable information to advance awareness of the processes and drivers of online international negotiation. In the time of COVID-19, there is an increased use of remote negotiation, including in the B2C domain with live streaming or between unions and governments, and this study can be useful for understanding the climate of trust. Originality – Prior research in B-to-B settings does not clearly distinguish between trust and trust climate, at best incorporating the concept into the relational atmosphere. This paper also contributes by deepening the discussion of the advantages of e-communication for the expeditious establishment of trust climate in online negotiations.