Influence factors of trust building in cooperation agreements

Trust is a key success factor in cooperation agreements. Therefore, identifying the factors that make the greatest contribution toward building trust is fundamental for an understanding of cooperation agreements. This paper analyzes two factors that might contribute to generating trust for successful agreements during the initial stages of the relationship. These factors are the partnerʹs reputation and prior partnering experience. The study aims to confirm and complete the understanding of the relationship between these two variables and the success of cooperation agreements, by examining the indirect effect, through trust building, that these factors have on the success of agreements. The study analyzes these relationships by applying a structural equation model on the basis of partial least squares (PLS) methodology. The total impact of previous cooperation experience and the partnerʹs reputation on the success of cooperation agreements is strong, positive, and significant.