INTER-ORGANIZATIONAL TRUST AND EFFECT ON VIRTUAL ORGANIZATIONS’ PERFORMANCE OF SELECTED NIGERIAN SERVICE FIRMS

TABLE OF CONTENTS
Declaration
Approval
Dedication
Acknowledgements
Abstract
List of Tables
List of figures

CHAPTER ONE
INTRODUCTION
1.1       Background of the Study
1.2       Statement of the Problem
1.3       Objectives of the Study
1.4       Research Questions
1.5       Research Hypotheses
1.6       Significance of the Study
1.7       Scope of the Study
1.8       Limitations of the Study
1.9       Profile of the Selected Service Organizations
1.10     Contextual Definition of Terms
            References

CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1       Introduction
2.2       Conceptual Framework of Inter-Organizational Trust
2.3       Theoretical Farmework
2.3.1    The Concept of Organizational Trust
2.3.2    The Process of Virtual Organization
2.4       Empirical Review
2.5       Development of Inter-Organizational Trust
2.6       Factors Affecting Trust Worthiness Assessment During Alliance Formation
2.7       The Factors that Facilitate Organizational Trust
2.8       Organizational Trust in Public Service Organizations
2.9       Role of Inter-Organizational Trust
2.10     Outcome of Inter-Ogrnaizational Trust
2.11     Results of Organizational Trust for the Employers and the Employees
2.12     Mediated Availability
2.13     Perceptions in Virtual Organization
2.14     Expectations for Mediated Availability
2.15     Virtual Organization Model
2.16     Virtual Task
2.17     Virtual Corporation
2.18     Virtual Team
2.19     The Organizational Process
2.20     Organizational Design
2.21     Process of Organizational Design
2.22     Communciation and Information System in Virtual Organization
2.23     Inter-Organizational General System Theory
2.24     Rhetorical Process of Communication
2.25     Transactional Dimensions of Communciation
2.26     Management and Organizational Process
2.27     Managerial Roles Highlight
2.28     Inter-Organizational Process Teamwork
2.29     Organizational Activities
2.30     Summary of the Review
            References

CHATER THREE
RESEARCH METHODOLOGY
3.1       Introduction
3.2       Research Design
3.3       Sources of Data
3.4       Population of the Study
3.5       Sample Size Determination
3.6       Sampling Techniques
3.7       Instrument for Data Collection
3.8       Validity of Instruments
3.9       Relability of the Instruments
3.10     Method of Data Analysis
            References

CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1       Introduction
4.2       Data Presentation
4.3       Analysis of Data or Responses Rate
4.4       Testing of Hypothesis and Z Test
4.4.1    Testing of Hypotheses
4.4.2    Z Test (Test of Hypotheses)
4.5       Discussion of Results

CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1       Summary of Major Findings
5.2       Conclusion


ABSTRACT
This investigation is based on inter-organizational trust and effect on virtual organizational performance of selected Nigerian service firms. Inter-organizational trust is the extent to which members of a firm hold a collective trust orientation towards another organization. Virtual organization brings together theories about the nature of work in the information age, the organization of social behaviour, and the role technology plays in the evolution of social structure. Inter-organizational trust in virtual organizations is difficult to manage, members work individually and there is hardly any control. In today’s knowledge-based competitive environment, a firm’s ability to establish inter-generational relationships in terms of strategic alliances and performance inside and outside a firm has become a critical fount of competitiveness. In inter-organizational relationships, the most common success factor, and possibly the most critical one is trust. Trust is widely acknowledged as being important for the efficient operation of inter-organizational business activities, the formation of trust remains challenging, the experience with trust despite increased interest and the acknowledged role of trust to a company’s competitiveness is that there has not yet been theoretically and empirically coherent attempts to measure trust in inter-organizational contexts to the best of my knowledge. Virtual organization is also a collection of geographically distributed, functionally and/or culturally diverse entities that are linked by electronic forms of communication and rely on lateral, dynamic relationships for coordination. Consequently lack of inter-organizational trust and reliability in virtual organizations as a result of perceived risks from privacy concerns and vulnerability to fraud may impede organizations’ performance. In carrying out this investigation, seven research objectives and seven research questions were formulated along side with seven research hypotheses. Relevant data were reviewed, this provide an understanding of previous work in an area of investigation thereby providing basis for the researchable problem at stake. The chief instrument for data collection was questionnaire, which was designed for low, middle and top level management staff. Thirty five (35) questionnaire items were administered to the respondents. The data was analyzed using a chi-square statistical technique and Z Test. The result of the study showed that inter-organizational trust influences virtual organizations commitment and performance and firm benefitted more from inter-organizational trust when the degree of interdependence between two organizations was higher. The result of the study also showed that conflict to a large extent is adversely related to lack of shared understanding between partners in virtual organizations. When we examine inter-organizational trust in virtual organizations from the perspective of network organizations, then we certainly conclude that inter-organizational trust in virtual organizations is a new type of network. Finally, it was recommended that, the formation of organizational process should be based on trust and not on the basis of power which will result in increase commitment, job-satisfaction, performance and growth of employees and the organizations in general.


CHAPTER ONE: INTRODUCTION
1.1              Background of the Study
While trust is widely acknowledged as being important for the efficient operation of inter-organizational business arrangements, the formation of trust remains challenging. Trust has several connotations. It refers to a situation attributed by one party (trustor) willing to rely on the actions of another party (trustee); the situation is directed to the future and the trustor forcefully or voluntarily abandons control over the actions performed by the trustee. The trustor is uncertain about the outcome of the others actions; he can only develop and evaluate expectations. The uncertainty involves the risk of failure to the trustor if the trustee will not behave as desired. Trust can be attributed to relationships between people. It can be demonstrated that humans have a natural disposition to trust and to judge trustworthiness that can be traced to the activity of human brain and neurobiological structure and can be altered.


It has become increasingly clear that inter-organizational trust is an important factor affecting the actions and performance of organizations engaged in dyadic and network relationships such as strategic alliances. Issues associated with organizational trust have generated a great deal of broad scholarly interest in the field, as evidenced by the dozens of articles and special issues of the leading journals that have been devoted to the theme of trust. Yet, although there exists a significant amount of literature on trust in an organizational context as well as research in related area such as alliances, social networks, and interpersonal trust-scholarly work specifically dealing with inter-organizational trust is a more limited area of research. A commonly used definition of inter-organizational trust is the extent to which members of one organization hold a collective trust orientation toward another organization (Zaheer, McEvily, and Perrone, 1998). Relatedly, Currall and Inkpen (2002) draw attention to the socially constructed shared history within an organization toward another organization that constitutes a collective orientation. In this vein, it is important to avoid anthropomorphizing the organization by treating inter-organizational trust as equivalent to an individual trusting another individual...

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