The empirical research of the relationship between organizational culture integration, trust and efficiency of Firm Networks

Efficiency of firm networks is receiving an increasing attention since the past decade. However, the alliance performance controlled by the non-contract mechanisms, such as organizational culture integration and trust within partners, is empirically largely unknown. This research investigates the relationship between organizational culture integration, trust and efficiency of firm networks in China. In the survey, 5 latent variables and 17 observed variables are conducted in structural equation model (SEM). It finds that trust within partners significantly contributes to efficiency of firm networks on reducing the transaction cost, knowledge sharing and complementary resources. Moreover, organizational culture integration influences on the efficiency of firm networks through trust within partners which is a mediating variable. Furthermore, the implications for alliance managers are also discussed.