Trust and Accountability in a Business Consortium: a case of coopetition

Abstract

This study in a business consortium at SERVTEC - PE, in Recife/Brazil, aimed at analyzing various aspects of trust in a coopetitive environment. This is a descriptive, exploratory and qualitative study, including semi-structured interviews with the five companies directors who have decided for the formation of the consortium. Combining the literature of coopetition and trust, the research had as main objective, to better understand relations of trust in a business consortium, considering that participants cooperate and compete in the same industry. The results showed that trust is essential in a business consortium relationship and it strongly contributes to achieving good results in a project. It was evident that the duration of this relationship determined the confidence levels of the consortium and therefore ensured longevity of the consortium for other projects. The study identified key attributes of trust considered by consortium members as competence, trustworthiness and mutual respect. These three are the core attributes of trust at SERVTEC. Finally, it became clear that accountability in a business consortium and clear division of responsibilities, together with financial results of the project can contribute to the achievement of higher levels of inter-organizational trust.