The research aimed to investigate the influence of diversification on inter-personal trust, and how the perceptions of inter-personal trust affects work group performance in South African organisations. Experiments were used to determine the effects of demographic differences on inter-personal trust and to stimulate the perceptions certain demographic groups have regarding inter-personal trust. Data was collected from a representative sample using both in-depth interviews in conjunction with a standardised questionnaire. Research findings indicated that demographics still influence inter-personal trust in South African organisations, even 17 years after the demise of apartheid. It was evident that especially for white individual‟s race and culture differences influenced their perception of inter-personal trust. The study also determine that inter-personal trust has a significant role to play on the performance of work groups in South African organisations, and that the level of diversity correlates with the level of inter-personal trust. An unexpected result from the study was the influence that age-diversification had on inter-personal trust perceptions. It is evident that there are still lots of work to be done in South Africa, and that race continues to play a role in the country. A lot of responsibility lies with the organisations themselves and there are a number of solutions that they have at their disposal. The result of these solutions could be beneficial for these organisations and the country as a whole.Copyright / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

This study investigated and distinguished between two different aspects of trust (i.e. inter-personal and inter-organisationl) in business relationships. Reviewing the extant literature, a model of business relationships was developed, bridging social exchange theory and transaction cost economics, in addition to using some ideas from the resource-based view. This model was built on an overall framework consisting of three main groups of business relationship characteristics, (1) attitudes (inter-personal and inter-organisational trust) (2) behaviours (commitment, information sharing and relationship-specific investments) and (3) outcomes (financial and non-economic (soft) performance). The overall framework suggested that the attitudinal characteristics affect behavioural characteristics, which consequently affect relationship outcomes. Furthermore, the role of the other party’s opportunistic behaviour as an antecedent of trust aspects was suggested in the model. In line with the overall framework, a basic model was developed with sixteen hypotheses. The model was extended considering dependence as a moderator, and suggesting two additional hypotheses.A questionnaire was designed to measure the characteristics in the model. Data collected from 331 informants (i.e. middle or senior managers knowledgeable about supplier relationships) was used to empirically test the model, using structural equation modeling. The analysis was performed testing the model fit and its underlying hypotheses, additionally using a control variable (the relationship length) and multiple-group analysis (controlling for the size of the company). Inter-personal trust and inter-organisational trust were found to be two distinct constructs (by means of implementing several techniques testing discriminant validity). The results supported the impact of inter-personal trust on inter-organisational trust, inter-personal trust impacting on commitment and information sharing while inter-organisational trust impacting on commitment, information sharing and relationship-specific investments (all in a positive way). The positive effect of behavioural characteristics on relationship outcomes was supported, commitment and relationship-specific investment influencing both financial and non-economic performance, while information sharing influencing non-economic performance. Relationship-specific investments impact positively on commitment, and financial performance impacts positively on non-economic performance. The moderating effects were supported; the positive effect of inter-organisational trust on relationship-specific investments and the positive effect of relationship-specific investments on commitment decrease as dependence increases. The negative effect of the other party’s opportunistic behaviour on trust dimensions was found, while its expected negative effect on relationship-specific investments was not supported in the whole sample. A mixture modeling approach was performed to explore this result. The negative effect was supported in a number of responses, as expected. However, surprisingly a positive effect was also found in a group of responses that were characterised by having relatively longer relationships with the supplier and observing a higher degree of opportunistic behaviour. Additionally relationship-specific investments had a stronger effect on its consequences within this group. Potential explanations for the findings with regard to this group were introduced. The research contributions and implications were also discussed.