What’s Trust Got to Do With It?: How startups consider trust in their MNE partner selection process

Abstract

In recent years, there has been a surge in initiatives by MNEs to reach out to startups to engage in collaborative efforts for innovation. Previous research has shown the potential of such collaborations to result in novel innovations, as each side essentially has what the other one lacks. However, startups face a tough dilemma when contemplating a collaboration with an MNE. On one hand, they can benefit greatly from the resources an MNE can provide, and on the other, can face the potential of being taken advantage of. With this dilemma in mind, the question of what role trust plays in startups’ partner selection process naturally arises. In this study, we explore how startups consider trust in their MNE partner selection process by interviewing six startups to get their unique insights. We draw connections between trust, dependence, and willingness to take risk, and conclude with theoretical and practical implications.