Relational signalling in governance mechanisms and trust building

‘Thick’ trust is required for the exchange of tacit knowledge in inter-organisational innovation collaborations. Management accounting researchers suggest that when governance mechanisms can provide sufficient mitigations to the relational risks, trusting relationships among the collaborating partne...

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Main Authors: Diong, Kah Seng, Foong, Soon Yau, Murali Sambasivan
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2018
Online Access:http://journalarticle.ukm.my/19707/
http://journalarticle.ukm.my/19707/1/19378-90566-1-PB.pdf
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author Diong, Kah Seng
Foong, Soon Yau
Murali Sambasivan,
author_facet Diong, Kah Seng
Foong, Soon Yau
Murali Sambasivan,
author_sort Diong, Kah Seng
building UKM Institutional Repository
collection Online Access
description ‘Thick’ trust is required for the exchange of tacit knowledge in inter-organisational innovation collaborations. Management accounting researchers suggest that when governance mechanisms can provide sufficient mitigations to the relational risks, trusting relationships among the collaborating partners can be developed. However, the question that remains unanswered is why do some collaborative relationships with proper governance structure not lead to the establishment of trust? This study seeks to identify the relational signals in formal governance mechanisms which can foster the development of ‘thick’ trust that is crucial for effective knowledge exchange. Based on the resource-based view (RBV), transaction cost economics theory (TCE), and relational signalling theory, this study proposes a conceptual framework that identifies the relational signalling elements in formal governance mechanisms that can foster ‘thick’ trust among partners. It contributes to the literature by distinguishing specific elements of conventional formal governance mechanisms as relational signalling elements for the effective development of trust among collaborating partners.
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spelling oai:generic.eprints.org:197072022-09-15T01:19:01Z http://journalarticle.ukm.my/19707/ Relational signalling in governance mechanisms and trust building Diong, Kah Seng Foong, Soon Yau Murali Sambasivan, ‘Thick’ trust is required for the exchange of tacit knowledge in inter-organisational innovation collaborations. Management accounting researchers suggest that when governance mechanisms can provide sufficient mitigations to the relational risks, trusting relationships among the collaborating partners can be developed. However, the question that remains unanswered is why do some collaborative relationships with proper governance structure not lead to the establishment of trust? This study seeks to identify the relational signals in formal governance mechanisms which can foster the development of ‘thick’ trust that is crucial for effective knowledge exchange. Based on the resource-based view (RBV), transaction cost economics theory (TCE), and relational signalling theory, this study proposes a conceptual framework that identifies the relational signalling elements in formal governance mechanisms that can foster ‘thick’ trust among partners. It contributes to the literature by distinguishing specific elements of conventional formal governance mechanisms as relational signalling elements for the effective development of trust among collaborating partners. Penerbit Universiti Kebangsaan Malaysia 2018 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/19707/1/19378-90566-1-PB.pdf Diong, Kah Seng and Foong, Soon Yau and Murali Sambasivan, (2018) Relational signalling in governance mechanisms and trust building. Asian Journal of Accounting and Governance, 9 . pp. 49-61. ISSN 2180-3838 https://ejournal.ukm.my/ajac/issue/view/1084/showToc
spellingShingle Diong, Kah Seng
Foong, Soon Yau
Murali Sambasivan,
Relational signalling in governance mechanisms and trust building
title Relational signalling in governance mechanisms and trust building
title_full Relational signalling in governance mechanisms and trust building
title_fullStr Relational signalling in governance mechanisms and trust building
title_full_unstemmed Relational signalling in governance mechanisms and trust building
title_short Relational signalling in governance mechanisms and trust building
title_sort relational signalling in governance mechanisms and trust building
url http://journalarticle.ukm.my/19707/
http://journalarticle.ukm.my/19707/
http://journalarticle.ukm.my/19707/1/19378-90566-1-PB.pdf