Understanding Culture and Trust Development in Negotiating New Business Relationships

Scholars describe trust development as an experiential process that involves phases of learning about the trustworthiness of another through repeated interactions. The extant literature does not clearly address whether the trust development process unfolds similarly or differently in different cultures. To address this gap in the literature, we conducted a theory development study, interviewing 64 managers from four different regions of the world. Focusing specifically on trust development in a high-risk context (i.e., negotiating a new business relationship), we developed a process model of trust development. We concluded that there are universal and culturally specific elements to the trust development process. In addition, we draw on cultural levels of trust and tightness-looseness to offer an explanation as to why the trust development process manifests differently across cultures. Thus, we offer a grounded framework for understanding the cultural similarities and differences in trust development in new business relationships.