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2013/2014  KAN-CM_J44  Trust and Trust-building in International Business

English Title
Trust and Trust-building in International Business

Course information
Language English
Exam ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Semester
Course period Autumn
Changes in course schedule may occur
Tuesday 13.30-17.10, week 37 - 43
Tuesday 13.30-17.55, week 44
Exam week 46
Time Table Please see course schedule at e-Campus
Max. participants 60
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Peter Ping Li - Department of International Economics and Management (INT)
Administration: Birgit Dahlgren - bgd.int@cbs.dk
Main academic disciplines
  • Globalization, International Business, markets and studies
  • Management
Last updated on 08-04-2014
Learning objectives
At the end of this course, the students are expected to have learned the state-of-the-art knowledge and skills concerning intercultural trust and trus-building.

To be awarded the highest mark (12), the student, with no or just a few insignificant shortcomings, must fulfill the following learning objectives:
• The student should be able to account for the theories related to the following issues;
• The student should be able to discuss the strength and weakness in those theories as applied to the following issues;
• The student should be able to apply the correct theories on the following issues;
• The student should be able to present argumentation that supports a given action oriented conclusion based on an analysis of a given case related to the following issues;
• The student should be able to reflect on the consequences of applying different theories on the following issues.
  • What is intercultural trust in contrast to comparative cross-cultural trust? What is the strategic significance of intercultural trust and trust-building, including the strategic goals and outcomes of intercultural trust-building in the context of international business?
  • What are the unique nature and features of intercultural trust in the context of international business?
  • What are the core process and mechanisms of intercultural trust-building in the context of international business?
  • How do we make sound decisions regarding the forms and strengths of intercultural trust in the context of international business?
  • How do we effectively implement the decisions in the process of intercultural trust-building in the context of international business?
Examination
Trust and Trust-building in International Business:
Examination form Home assignment - written product
Individual or group exam Individual
Size of written product Max. 15 pages
Assignment type Project
Duration Written product to be submitted on specified date and time.
Grading scale 7-step scale
Examiner(s) One internal examiner
Exam period Autumn Term
Make-up exam/re-exam
Same examination form as the ordinary exam
Course content and structure

The overall goal of this elective is to enhance the students’ understanding and capabilities concerning intercultural trust-building in the context of managing international business activities. We can do so by providing an integrative framework and a detailed coverage of various related issues so as to help the students understand the nature, features, sources and mechanisms of trust-building in the context of international business with intercultural interaction. In particular, we want to focus on the capabilities of managing the trust-building process for the success in international business.
 

In this novel elective course (the first in the world to my best knowledge), we explore the above five essential questions on intercultural trust and trust-building in the context of international business. To address the five critical questions as the purpose of this new elective course, we seek to integrate three constructs into one conceptual framework, i.e., asymmetrical trust, integrative trust, and acculturation as the three pillars of an integrative framework of intercultural trust and trust-building, and then apply it to the context of international business.
 

Specifically, based on the premise that the level and type of trust differ cross cultures, which is overwhelmingly supported by the evidence of comparative trust research, we integrate the seminal ideas of asymmetrical (culture-specific) trust and integrative (geocentric as culture-integrative) trust with the traditional construct of acculturation by positing that people and firms from different cultures tend to evoke different bases of trust with different preferences for different forms of trust as well as adopt different mechanisms and strategies to build such trust, at least so at the initial stage of intercultural interaction. However, we further argue that over time the cultural distinction will wear off toward a more or less shared trust and an integrative style of trust-building. This is the central theme of our integrative framework.
 

Based upon the integrative framework, we provide two typologies to address the specific questions about how to apply the framework to the context of international business. The first typology diagnoses the various situations where people and firms interact with each other across diverse cultures, and the second typology prescribes the specific strategies to manage various situations of intercultural trust-building in the context of international business.
 

In short, we seek to enhance our understanding about trust in international collaborations beyond the initial recognition of the reality that both the nature of trust and the institutional and cultural bases of trust differ across national contexts. We want to explore how asymmetrical trust evolves in the process of intercultural interaction. In other words, we explore the dynamic evolution of intercultural trust-building in the context of international business from asymmetrical trust (as the initial condition and status of trust-building) to geocentric trust (as the mature condition and status of trust-building) via the mechanism of acculturation (as the mechanism of adaptive learning).
Teaching methods
This elective course will be taught primarily as a seminar and secondarily in a lecture format. The students are expected to read the assigned reading materials before each session for the purpose of intensive in-class discussion. Outside speakers, especially the corporate executives from multinational enterprises, will be invited to present to the class. Further, each student is required to conduct an individual research project in a chosen topic from the list of issues covered in the class. Finally, we will keep up with what is happening in the real world events relevant to the class.
Further Information
Please note that Peter Ping Li wil offer 2 other electives. Please make sure that the schedules do not overlap!
Expected literature

Recommended L iterature:

Required Textbook:

N.K. Saunders, D. Skinner, G. Dietz, N. Gillespie & R.J. Lewicki(Eds.) (2010). Organizational Trust: A Cultural Perspective. New York: Cambridge University Press.

Required Articles:

Li, P.P. 2007. Toward an inter-disciplinary conceptualization of trust: A typological approach.Management and Organization Review, 3: 421-445.

Li, P.P. 2008. Toward a geocentric framework of trust: An application to organizational trust. Management and Organization Review, 4: 413-439.

Li, P.P. 2010. Intercultural trust and trust-building: The contexts and strategies of adaptive learning in acculturation. Presented at the Academy of Management, Montreal, Canada, August 8-10.

Extra Reference Books:

Colleen A. Ward, Stephen Bochner and Adrian Furnham (2001) Psychology of Culture Shock (2nd Ed.). London: Routledge.

Stella W.C. Ting-Toomey and John Oetzel(2001). Managing Intercultural Conflict Effectively. California:Sage.

Further Suggested Readings:

Adler, N.J. & Graham, J.L. 1989. Cross-cultural interaction: The international comparison fallacy? Journal of International Business Studies, 515-537.

Berry, J.W. 2008. Globalization and acculturation. International Journal of Intercultural Relations, 32: 328-336.

Chua, R. Y.J., Ingram, P. & Morris, M. 2008. From the head and the heart: Locating cognition- and affect-based trust in managers’ professional networks. Academy of Management Journal, 51: 436-452.

Doney, P.M., Cannon, J.P. & Mullen, M.R. 1998. Understanding the influence of national culture on the development of trust. Academy of Management Review, 23: 601–620.

Gelfand, M.J., Erez, M. & Aycan, Z. 2007. Cross-cultural organizational behavior. Annual Review of Psychology, 58: 479-514.

Johnson, J.L., Cullen, J.B., Sakano, T. & Takenouchi, T. 1996. Setting the stage for trust and strategic integration in Japanese-U.S. cooperative alliances. Journal of International Business Studies, 27: 981-1004

Li, P.P. 1998. Towards a geocentric framework of organizational form: A holistic, dynamic and paradoxical Approach. Organization Studies, 19: 829-863.

Li, P.P. 2010. Toward a Learning-based View of Internationalization: The Accelerated Trajectories of Cross-Border Learning. Journal of International Management, 16: 43-59.

Nahavandi, A. & Malekzadeh, A.R. 1988. Acculturation in mergers and acquisitions. Academy of Management Review, 13: 79-90.

Rao, A. & Hashimoto, K. 1996. Intercultural influence: A study of Japanese expatriate managers in Canada. Journal of International Business Studies, 27: 443-466.

Takahashi, C., Yamagishi, T., Liu, J.H., Wang, F., Lin Y. & Yu, S. 2008. The intercultural trust paradigm: Studying joint cultural interaction and social exchange in real time over the Internet. International Journal of Intercultural Relations, 32: 215-228.

Zaheer, S. & Zaheer, A. 2006. Trust across borders. Journal of International Business Studies, 37: 21-29.
Last updated on 08-04-2014