Trust

Purpose--The primary objective of this research is to test a model examining interpersonal trust between marketing managers and R&D managers during new product development projects. Design/methodology/approach--In this study interpersonal trust as a bi-dimensional construct with cognitive and affective components is conceptualised. The authors' integrative structural model specifies Weber's structural/bureaucratic dimensions--formalisation and centralisation to predict three communication dimensions, communication frequency, quality, and bi-directionality. In turn these communication dimensions are used to predict cognition-based trust, and affect-based trust. In addition, the paper models the direct effects of the three communication dimensions on a dependent variable--perceived relationship effectiveness. The hypothesised model consists of 16 hypotheses, seven of which relate to the two focal interpersonal trust constructs. The measures were tested and a structural model estimated by using PLS. Data were provided by 184 R&D managers in Australia, reporting on their working relationship with a counterpart marketing manager during a recent product development project. Findings--The hypothesized model has high explanatory power and it was found that both trust dimensions strongly influenced the effectiveness of marketing/R&D relationships during new product development, with cognition-based trust having the strongest impact. The results also reveal which forms of communication help to build interpersonal trust. The most powerful effect was from communication quality to cognition-based trust. The next strongest effects were from bi-directional communication, which was a strong predictor of affect-based trust, and a somewhat weaker predictor of cognition-based trust. Interestingly, the direct effects of our three communication behaviours on relationship effectiveness were modest, suggesting that their relationship building effects are largely indirect. Last, it is...