Power and Trust (Hart, saunders, 1997, Organization Sci)

1. In a dyadic relationship between a buyer and supplier, power is a function of (1) dependence on the other party, and (2) the use of dependence to leverage change in accord with the intentions of the less dependent firm. The source and extent of relative dependence are determinants of power that represent the firm's capac- ity to influence change in another firm (Cartwright 1965, Dahl 1957, Emerson 1962).

2. A core principle of trust, as it has been described by a number of researchers, is the optimistic anticipated behavior of another party. For example, Lewis and Weigert (1985) have described trust as "the undertak- ing of a risky course of action on the confident expecta- tion that all persons involved in the action will act competently and dutifully" (p. 971). Ring and Van de Ven (1994) refer to trust as "confidence in the good will of others" (p. 93).

3. the anticipated behavior of the partner is a shared expectation of both parties (Zucker 1986). To the extent that one partner conforms to the expecta- tions, the other partner will be encouraged to continue the association. I'hus, there is a reciprocal relationship between continuity and trust: as trust reinforces the prospect of continuity in a relationship, a commitment to extend an interorganizational relationship into the future encourages trust.

4. The importance of trust is based on the potential use of the technology to increase information sharing. Trust increases the probability of a firm's willingness to ex- pand the amount of information sharing through EDI and explore new mutually beneficial arrangements re- lated to EDI that improve interfirm coordination.

5. Trust plays an important role in EDI use for two reasons. First, it encourages firms to make investments necessary for electronic information exchange. Second, it discourages opportunistic behavior which would clearly reduce the opportunity for greater information sharing over time.

6. While most research on trust has addressed relation- ships between individuals, recent investigations have focused on intra and interorganizational relationships (Mishra, 1995, Ring and Van de Ven 1994). Mishra (1995) reported a multidimensional construct useful for developing a framework to understand the role of trust in EDI adoption.

7. Following Mishra (1995) there are four interrelated dimensions of trust: competence, openness, caring,- and reliability.