The relationship between inter-organizational trust and performance

Abstract

The article deals with an investigation of the relationship between inter-organizational trust and performance. Using data obtained in a questionnaire survey in 373 organizations with more than 20 employees with their seat in the Czech Republic, we found the relationship between inter-organizational trust and supplier performance, mediated by the level of conflict. Also, the statistically significant negative relationship between inter-organizational trust and costs of negotiation and the statistically significant positive relationship between supplier performance and perceived performance were confirmed. The hypothesis on the statistically significant relationship between inter-organizational trust and negotiating costs was not confirmed. The structural equation modelling technique was used in the calculations. The calculated model fit indices (CFI, NFI, NNFI) with values over 0.9 demonstrate a very good quality of the model.

Keywords

• inter-organizational trust
• costs of negotiation
• level of conflict
• performance