Transcript Virtual Leadership and Trust Presentation

Dina Preston-Ortiz
University of Phoenix

Continued Growth of Strategic Alliance
◦ Global economy growth
◦ Technology forces
 competitive efficiencies

High Failure Rate
◦ 70-75%
 Partners are competitors outside alliance

Trust role in creating value
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
General Problem
◦ The general problem addressed in the Delphi Study
is the 70-75% failure rate of strategic alliances

Specific Problem
(“Create Successful International Mergers and
Alliances,” 2006; Taylor, 2005; Zineldin
& Dodourova, 2005).
◦ Trust influence on resource sharing, use of
administrative controls and management flexibility
critical to the development of successful
partnerships
(Das & Teng, 1998; Schumacher, 2006; Rowlings,
Cheung, Simons & Rafferty, 2006).
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
The purpose of this qualitative Delphi study is
to formulate a consensus from experts who
have knowledge of the influence of trust on
virtual alliance performance for the
development of successful alliance.
4

A qualitative Delphi technique was applied to
understand the influence of trust on virtual alliance
performance
(Creswell, 2005; Gonzalez et al., 2006; Grisham,
2009 Skulmoski, Hartman & Krahn, 2007)
◦ Convenience and snowball sampling
◦ 15 panelist
◦ 3 qualitative survey rounds
 Open-ended questions
 Likert-type scale survey
 Ranking agreement/disagreement
◦ Outcome assessment
◦ 5 best practices
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The study explored the research question of how trust
among virtual strategic-alliance members influences
business operations and the performance of
individual alliance members (see Figure 1).
Trust
Influence
Performance Indicators
•Management control
•Resource sharing
•Network flexibility
Figure 1. Research Question Model
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Systems Perspective
Transactional Perspective
Social Science Perspective
General System Theory
(“Chapter XVI General Systems Theory,”
1964; Katz & Kahn, 1978; von
Bertalanffy, 2008)
Agency Theory
(Bergen et al., 1992; Jensen &
Meckling, 1976)
Social Exchange Theory (Bignoux,
2006; Lambe, Wittmann, & Spekman,
2001; Voss et al., 2006; Young-Ybarra
& Wiersma,1999)
Open system Theory
(Morrison, 2004; Yasin, Bayes &
Czuchry,2005)
Transaction Cost Theory
(De Jong & Woolthuis, 2009; Goo et al.,
2009 ;Judge & Dooley, 2006; YoungYbarra, & Wiersma, 1999).
Commitment Trust Theory (Bignoux,
2006; Morgan & Hunt, 1994; The
commitment-trust theory, 1994; Voss
et al., 2006)
Strategic Alliance Foundational
Research
(Das, & Teng, 1998; Das, & Teng,
2001a; Das, & Teng, 2001b; Kearney,
2006)
Value Chain Theory
(Jonk, Handschuh, & Niewiem, 2008;
Stewart & Fenn, 2006; Weber, 2008
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


Population: Meeting Planners International
Sample: Arizona Sunbelt Chapter, MPI
Sample Criteria
A. Business owner or employee in an organization with at
least 1 year membership in AZ Sunbelt Chapter
B. Provide a service or products using the Internet or other
types of technology information systems.
C. Experience using the Internet or other types of
technology information systems to contract/coordinate.
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Qualitative Delphi Study Design
Research
Question
1) Three Survey Rounds
2) Survey Instruments
 R1: Open-Ended Question Survey
 R2: Likert-Scale Survey
 R3: Ranking of Agreement
Pilot Studies
Methodology
Delphi R1: Survey & Analysis
Delphi R2: Survey Design
2) Open-Ended Question Survey
3) Survey Analysis
 Thematic coding (nominal data)
 Likert-type scale survey
questions developed
1) Likert-Type Scale Survey
 Attitude scale from 1
(Agree Completely) to 5
(Disagree Completely).
Delphi R2: Survey & Analysis
Delphi R3: Survey Design
1) Likert-Type Scale Survey
2) Survey Analysis
 Measure central tendency
(median/ordinal data) for each
question
 Ranking index developed
1) Ranking of Agreement
 Rank index
(agreement/disagreement)
for each item presented in
index
Delphi R3: Survey & Analysis
3) Ranking of Agreement
4) Ranking Analysis
 Assess according to
agreement/disagreement
 Develop best practices
Delphi: Research Documentation




Analysis of Findings
Interpretations
Conclusion
Best Practices
Recommendation
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

Pilot Round: Open-ended survey
Round 1: Open-ended survey
◦ Six Central Themes identified (see Table K1)
 Data reduction: Coding of nominal data
 Development of R2: Likert-type scale survey

Round 2: Likert-type scale survey
◦ 20 statements developed (See Table K2)
 Data reduction: Ordinal data median
 Histogram: Gauge response differences between the trust and
leadership questions.
 Development R3: Ranking agreement/disagreement survey

Round 3: Ranking agreement/disagreement
◦ 18 statements developed (See Table K4)
 Data reduction: Number of responses to each statement
 Five statements (100% agreement)
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Trust Statements
Leadership Statements
The most important influences of trust include
(a) creating a platform of respect (b) increased
partner cooperation and (c) understanding
between stakeholders
Leaders must have a vision, inspire possibilities
in partners, and increase innovation through
learning to build successful virtual alliances
Leaders must provide clear and dependable
communication to build trust in virtual strategic
alliances
To create trust in virtual alliances leaders need
to be consistent, able to clarify boundaries, roles
and partner expectations
To build trust among virtual alliance partners,
leaders must be accessible
*Based on the rankings above, these five statements received 100% agreement response rate from participants
representing 25% of the final statements developed for Round Three
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
The Central Contributions
 Leadership based practices had a greater
influence on virtual alliance performance
compared to trust based practices


Exception: creating a platform of respect
 Cooperative resource exchanges
 Long-term relationships
Contingency approach to leadership
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
Additional Data
1. Trust did not appear to reduce
management controls
2. Trust supports flexibility through
partner comfort and cooperation
3. Trust contributes to partner's individual
goals
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Addressed trust’s influence on management
controls such as contracts, resource sharing, and
underlying factors that lead to network flexibility in
specific industries
(Ang, 2007; Das & Teng, 1998; Schumacher, 2006;
Vianna Villas & Aduard de Macedo-Soares, 2007; YoungYbarra & Wiers,1999)


Addressed the underlying influences of a virtual
network structure on an alliance’s communication
and culture.
(Kearney, 2006)
Gaps in past research included the ability to
generalize the influence of trust on performance at
it extends to other industries
(McEvily & Marcus, 2005)
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
External validity
◦ Small sample size and homogeneity of the 15
participants
◦ Participant expertise
◦ Participants willingness to share information
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
Leadership Based Practices
◦
◦
◦
◦
◦

consistent behavior
accessibility
innovation through learning
utilize clear and dependable communications
encourage partner cooperation
Trust Based Practices
◦ create a platform of respect
 Cooperation/communication
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THE AFFECTS OF TRUST IN VIRTUAL
STRATEGIC-ALLIANCE PERFORMANCE
OUTCOMES.
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