AREN’T WE THE BEST? SENSE OF SUPERIORITY AND LEVEL OF NARCISSISM IN STRATEGIC ALLIANCES’ TRUST
Master thesis, MSc Human Resource Management University of Groningen, Faculty of Economics and Business
February 26, 2020
LETICIA BELLA PUTRI SUDARMAJI Student number: 3181359
Nieuwendijk 111B 1012 MD Amsterdam tel.: +31 (0)611691627
e-mail: l.b.p.sudarmaji@student.rug.nl
Supervisor Martin Kleis Pit
Acknowledgements: I would like to extend my gratitude for the helpful comments and support on
this thesis that were given by my supervisor, Martin Kleis Pit. Despite his busy schedule, he always
made time to provide critical thoughts on my writing. Further, I would like to thank Larasati
Sihkristantini, Marten Class Thee, and my family for their constant support.
ABSTRACT
Strategic alliances have been one of the most popular topics in the business world to look into; it is unsurprising taking into account of their prominence and frequency of occurrence in the business world. This fame is driven by the risk-sharing opportunity for companies to develop new products or enter into a new market while maintaining their independence. I conducted an experimental study where I look at the trusting behaviour of the participants acting as an alliance manager for an assigned company. I looked into whether organizational identity will affect trust among companies in an alliance partnership. Further, this relationship is mediated by the alliance manager’s sense of superiority whereby the mediation relationship is moderated by the alliance manager’s level of narcissism. The result of the experiment confirmed that similar identity does play a role in the amount of trust put to the partner organisation in an alliance. However, I found no evidence of the effect of sense of superiority and narcissism on the identity and trust relationship.
Keywords
Identity dynamics; Personality; Leaders; Social identity; Trust; Strategic alliance
Table of Contents
ABSTRACT ... i
INTRODUCTION ... 1
THEORY AND HYPOTHESES ... 5
Trust ... 5
Organisational identity ... 6
Alliance manager sense of superiority ... 8
Level of narcissism ... 11
METHOD ... 12
Operationalisations and sample ... 13
Manipulation ... 15
Variables ... 15
Dependent variable: Extent of Identity Similarity and Difference ... 15
Moderator: Level of narcissism ... 16
Mediator: Sense of superiority ... 16
Independent Variable: Trust ... 17
Control Variable ... 17
Data management plans ... 17
RESULTS ... 18
Descriptive and Correlation Analysis ... 18
Control Variable ... 18
Gender ... 18
Education ... 19
Identity and Trust ... 19
Mediation of Sense of Superiority ... 20
Moderated Mediation Analysis ... 21
DISCUSSION ... 22
Theoretical Implications ... 22
Practical Implications ... 25
Conclusion ... 25
Limitations and Future Research Ideas ... 26
REFERENCES ... 28
APPENDIX A ... 35
APPENDIX B ... 37
APPENDIX C ... 38
APPENDIX D ... 39
APPENDIX E ... Error! Bookmark not defined.
INTRODUCTION
To drive corporate growth or profitability, 90% of the US CEOs are planning to engage in a partnership, and as much as 40% of them are planning to explicitly participate in a new strategic alliance in 2019 (PwC, 2018). This popularity of engaging in a strategic alliance is mainly driven by the risk-sharing possibility of companies while maintaining their independence (Hofstede, 2010). A strategic alliance is a cooperative arrangement between two firms or more to enhance their performance and competitive position by sharing resources (Ireland, Hitt, & Vaidyanath, 2002). However, the number of CEOs that are willing to engage in a strategic alliance is still staggering, considering up to 70% of strategic alliances failed (Day, 1995).
Das and Teng (2000) conclude that one of the main factors of a strategic alliance failure is the lack of trust between the partners as the firms are too competitive among other factors. Trust is defined as the mutual confidence that no one will exploit another’s vulnerabilities (Barney &
Hansen, 1994). The existence of trust is thus crucial for stable working relationships and economic transactions (Hosmer, 1995). Due to the risk-sharing nature of the strategic alliance, trust is then even more critical, as Sabel (1993) mentioned, to trust someone is to take a risk with the trustee.
It is believed that only in risky situations do we need trust (Das & Teng, 2004).
Further, relational features such as cultural differences often explain alliance failure (de
Jong, 2016). An organisation’s culture is mostly seen and formed from the inside. However, when
it the norms and the values of the culture have been adapted in the organisation, it is more likely
that these values and norms are communicated outwards, forming an organisation identity. Identity
itself relates to a system of shared values and norms that define appropriate attitudes and
behaviours for organizational members (Das & Teng, 1998). Child (2001) states that one of the
bases of trust is one that is associated with a strong personal relationship, and this arises between those with a shared collective identity. Prior research on an organisational level has shown that organisational identity acts as an excellent platform in increasing the level of trust between employees (Gulatti et al., 2012). Previous literature has also touched upon how trust facilitates cooperation in strategic alliance (Mellewigt, Thomas, Weller, & Zajac, 2017; Wicks, Berman, &
Jones, 1999; Moore, 1998) and the effect of organisational identity on trust (Zhang & Huxham, 2009). In contrast, relatively little research has looked into the identity of organisations and how it affects trust in an alliance context. By examining the relationship between organisational identity on trust in strategic alliances we wish to gain further insight into how relational mechanisms can help explain alliance success.
In steering the direction of a strategic change such as a strategic alliance in an organisation, one of the most influential people are its leaders. Specifically, the alliance manager plays a significant role in building and maintaining trust amongst the partners as the support of senior management encourages individuals involved in alliance activity (Whipple et al., 2000).
Moreover, as leaders are the ones to go to for guidance, alliance managers can either facilitate or
hinder the effect of organisational identity in the alliance context. Leaders, such as alliance
managers in a strategic alliance, are ones who have the most influence in the process of
communicating identity and organisational reality (Clifton, 2017) and their personalities play a
significant role in strategic behaviour (Peterson et al., 2003). Further, Child (2001) stated that
collaborative relationships between organizations are executed through the interaction of
individuals, such as the alliance managers. Thus, alliance managers’ personality traits are crucial
in ensuring the success of the partnership. In strategic alliances I therefore focus on the perspective
of the alliance manager on identity as well as their personality and trusting behaviour for this thesis.
The effect of narcissistic leaders (for this study, alliance managers) to organisations and their decision making itself have been heavily researched, especially in the field of overall strategic change (Herrmann & Nadkarni, 2014; Chin et al., 2013; Chatterjee & Hambrick, 2007) and in numerous behavioural science journals on how it would affect trust (Rhodewalt and Morf, 1998;
Campbell and Miller, 2011). Previous studies have noted that a narcissistic tendency can be especially destructive to the organisation if their leader (alliance manager) possesses it (Lubit, 2002; Campbell and Miller, 2011). More often than not, this is due to their tendency to have a self- inflated view; thus, they do not trust anyone but themselves (Kwiatkowska et al., 2019). It is of consensus that strategic alliances are highly valuable; however, cooperation between two independent organisations is difficult to maintain. Prior literature has noted that in settings where collaboration is hard to maintain, people look towards leaders (for this study, alliance managers) for guidance (Child, 2001). However, leadership can either be beneficial for cooperation or can harm some cases, such as those with narcissistic tendencies. As noted before, trust and collaboration are of high value in the strategic alliance; thus, by looking further into how leadership traits in alliance managers affect the relationship of identity and trust in an alliance context, I hope to add additional insight to the debate on the role of identity on trust via alliance managers’
personality traits. Thereby, I propose to take a more comprehensive look at their role in a strategic alliance trust context. Accordingly, the research question as a basis for this thesis is as follows:
What is the effect of organisational identity perceptions on trusting behaviour between companies in an alliance partnership?
Additionally, through this study, I aim to find out how alliance managers’ narcissistic
tendencies steer the effect of identity perceptions of alliance managers to the partner organisation
in the alliance. By answering the following proposed research question, the study seeks to fill in
the gaps from the existing research on the success factor of strategic alliances. The study also hopes to further the understanding of how organisational identity shapes trust between companies.
With the result of this study, I hope to provide a new insight that managers can use in making decisions to enhance trust, to mitigate risks in partner selection, and avoid partnership failure.
Further, as I conduct this study on an experimental basis, I can capture a robust behavioural aspect of trust in strategic alliances.
This thesis begins with a broad introduction of the topic itself, followed by a theoretical framework and background which will introduce us to the formulated hypotheses and conceptual model.
Finally, the method section will elaborate on the operationalisation of the study.
THEORY AND HYPOTHESES
Trust
Trust is defined as the mutual confidence that no party in an exchange will exploit another’s vulnerabilities (Barney & Hansen, 1994). Someone can be said to be showing trusting behaviour when they are making themselves vulnerable to the actions of another person (Lahno, 2004). It can serve as a helpful tool in building relationships and maintaining collaboration. Further, Wicks, Berman, and Jones (1999) noted that trust is essential in yielding positive outcomes in economic transactions, with its existence, trust can lower transaction and agency costs despite the risks that come with it (e.g., opportunism risks). However, when trust is misplaced, it can foster unethical behaviour (Yip & Schweitzer, 2015) and thus yielding to resentment and distrust.
In the context of the strategic alliance, trust plays an essential role in predicting the success of the cooperation (Das & Teng, 1998). Due to the unique nature of strategic alliances, the companies in an alliance partnership depend on each other to reap the benefit of the partnership yet remain autonomous and continue to have their interests and identity. The existence of trust then allows partners to share crucial information needed to manage the alliance and assuring the partners of the plausibility of meeting their long-term needs (Moore, 1998). Further, Ring and Van de Ven (1994) stated that when two parties are highly dependent on each other, they would have an incentive to make the relationship work. The development of mutual trust in alliances helps reduce the adverse effects of uncertainties in partnerships such as the problem of a specific investment, and opportunism, thus decreasing overall transaction cost (Chiles & McMakin, 1996).
Naturally, as individuals have limited knowledge, they are to make decisions based on the
cognitive limitations of their minds. Thus, to have mutual trust between partners can decrease the
possibility that the action taken by alliance managers under their bounded rationality is harmful.
Further, cooperation is impeded when there is a lack of trust. Gambetta (1988) stated that when an individual say that they find that someone is trustworthy, they implicitly assume that they will perform a beneficial action or at the very least not detrimental to us and thus made us consider engaging in some form of cooperation. Thereby, lack of trust would signal that another party might act in a behaviour that is harmful to an alliance manager, barring our inclination to cooperate with the perceived untrustworthy partner. Thus, having trust facilitates strategic alliance, as in trusting relationships in which people are dependent on one another, would they give their best and commit to their cooperation partners.
Organisational identity
Organisational identity refers to a system of shared values and norms that define appropriate attitudes and behaviours for organizational members (Das & Teng, 1998). This sense of identity is usually due to individuals’ claims of self-categorization (Ashforth & Mael, 1989) and they tend to build this sense of belonging by finding some common attributes between themselves and the organisations (Tajfel & Turner, 1986). Organisational identity can shape how a company deals with its networks and how these are governed, how consensus is reached, and how relationships are ended (Kohtamäki, Thorgren, & Wincent, 2016). Having a clear organisational identity would also give alliance managers direction on their identity in the company. Take into example a company that is in crisis, without a clear sense of identity, different types of alliance managers taking different actions and decisions will lead to further miscommunication and high conflict resolution. These small differences in terms of identity that take form as in management style and culture will make it challenging to create synergies between organisation (Lajara, Lillo,
& Sempere, 2002). This self-concept of identity leads to the categorisation of in-groups and out-
group (Oldmeadow et al., 2003) where people would put one or the other in a membership based on their attitudes, beliefs, and perceptions. Social identity theory posits that alliance managers of a certain group tend to favour and gravitate towards other in-group alliance managers and can be more likely to move towards other alliance managers that are part of companies with identity and norms that are similar to them. Having a similar organizational identity in this sense creates a shared feeling of ‘who they are’ and helps to foster the idea that these others share the same values, norms and principles as the alliance manager; providing a feeling of social cohesion. Overall, this provides the idea that those with a similar identity as the alliance manager are more likely to act out of goodwill. By moving towards others that are similar to them, it is more likely for them to be accepted in the in-group.
Further, Child (2001) has noted that one of the bases of trust is one that is associated with a strong personal relationship as trust between organisations mainly reflects the quality of relationships between the people who represent or symbolise the organisations. As familiarity is the precondition for trust (Luhmann, 1979), a similarity between a preconceived organisational identity such as values would increase trust between partners. This form arises between those with a shared collective identity, such as similar values, and a shared concept of moral obligation. These similarities will have them bonded with each other. Thus, when alliance managers experience a similar perceived organisational identity between the companies in an alliance partnership, I expect that it will strengthen perceived trust towards the alliance manager of the partner organisation.
On the other hand, in scenarios where there are little synergies due to the existence of in- group and out-group, social identity theory posits that alliance managers view those with a different identity (out group) as being more likely to have divergent values and norms to them.
These perceptions of different values and norms create a foundation for wariness and distrust
(Deutsch, 2003), laying a foundation for alliance managers to view those with a different identity as more competitive. In turn, they tend to withhold information and ideas to increase their chances of winning over the out-group (Deutsch, 2003). In the alliance context, a different organizational identity can thus foster a feeling of wariness (based on the perception of different values and norms ascribed to the out-group members), that results in this act of withholding information. Combined with an increased likelihood to further their chance of winning over the out-group disrupts the willingness of the alliance manager to be vulnerable towards their partner. Thus, little synergies due to differences in organisation identity in a strategic alliance would lead to distrust amongst one another. Therefore, when alliance managers experience that there is a different perceived organisational identity (versus a similar organizational identity), I propose that trust towards the alliance manager of the partner organisation is negatively impacted.
H
1: Trust between alliance managers is higher when the alliance is characterised by similar organisational identities (versus when it is characterised by different organisational identities).
Alliance manager sense of superiority
As mentioned before, alliance managers act as a point of reference in times where cooperation is hard to maintain. Bilali (2012) observed that based on the evaluative component of a person, one way in which a person can keep their group’s favourable image is to view their group as better than other groups. When individuals such as alliance managers have a strong sense of organisational identity, they attach their own value to their group identity. Thereby, the success of their own group acts as an important determinant of their personal self-esteem and will maintain a clouded positive evaluation of their group identity. Consequently, the tendency of an alliance manager to have an inflated view of the organisation they believe to be a part of will increase.
Tajfel (1978) presented an explanation that social identity, such as organisational identity and
ingroup positivity are coupled and resulting in enhanced self-esteem. Further, an alliance manager’s desire to enhance their self-esteem and status can be done by being a part of a highly prestigious group (Dutton et al., 1994). Thereby, these managers form an ingroup positivity bias, the tendency for individuals to be more helpful and positive to their own group rather than out- group members which leads to self-aggrandizing of the group outcomes (Brewer, 2001). In other words, alliance managers are more likely to attribute strong favourable emotions to those that belong to their in-group, as a means with which to protect their own concept of self-esteem they gain from belonging to that particular ingroup.
The notion of similarities or differences in organisational identity establishing in-group and out-group perceptions further creates a rift between alliance managers of both organisations. As alliance managers acts as the face of their respective company, they attach themselves to the identity of the company (Tajfel, 1978). When the other organisation in the alliance has a different identity than those of which the alliance manager’s company believes in, the alliance manager would then consider them as an out-group member. The classification of in-group and out-group members thus leads to a defensive state to maintain the in-group’s favourable image. Conversely, when the partner organisation in the alliance identity is similar to the alliance manager’s company, the manager would be more likely to consider the partner organisation in the alliance an in-group member. Thereby, eliminating the sense that one must be better than the other. I then posit that in strategic alliance, the more similar the partner company’s identity to the current company, the less would the sense of superiority of the alliance manager be.
H
2: Sense of superiority between alliance managers is higher when the alliance is characterised
by different organisational identities (versus when it is characterised by similar organisational identities).
The sense of superiority will then lead to an arrogant behaviour which might hinder trust.
As someone feels superior above the other, they would feel compelled to control those that they deem inferior. Alliance managers with a strong sense of superiority as leaders then are likely to set high expectations, not only for themselves but also for those that they interact with, in order to maintain their sense of grandiosity and superiority (Morf & Rhodewalt, 2001; Rousseau, Sitkin, Burt, & Camerer, 1998). Literature has shown that when these expectations are met, they aid in reinforcing the sense of superiority; however, when they are not met act as a threat. A sense of superiority over another group provides alliance managers with the feeling that those they deem as inferior are more likely to break expectations. As Ouchi (1979) stated, to successfully cooperate, people must either be able to trust each other or closely monitor each other. This implies that to trust; one must realise that they must relinquish control over the other. Thus, when an alliance manager feels a sense of superiority above others, it can then be expected that they would have a lower incentive to cooperate compared to when they perceive their partners as equal (Ouchi, 1979).
Further, it has been noted that those with a sense of superiority tend to separate themselves from others (Bond, Kwan, & Li, 2000). As they are not as attached to the other group than they are with their identified group, they would not then be motivated to protect its goal and image.
Lahno (2004) stated that to expect cooperation to happen, there should be a sufficiently strong incentive. As alliance managers with a heightened sense of superiority distanced themselves from their perceived inferior partners, this low degree of interaction could result in a lesser degree of trusting behaviour. The previously mentioned reluctance to cooperate then would lead to the unwillingness to share resources due to perceived value imbalance. Accordingly, a high sense of superiority will result in an overall decrease in the sense of trust towards the opposing the partner organisation in the alliance.
H
3: High sense of superiority weakens trust between the companies in an alliance partnership.
H
4: Sense of superiority of alliance manager mediates the relationship between organisational identity (similar versus different) and trust.
Level of narcissism
A sense of superiority is often linked to a narcissistic tendency as it is one of the underlying natures of narcissism. The Diagnostic and Statistical Manual of Mental Disorder (1994), defines narcissism as a pervasive pattern of grandiosity be it in fantasy or behaviour, need for admiration, and lack of empathy. Narcissism is a concept which combines self-adoration with an aloofness that denies the need for another person (Russel, 1985). Grandiose sense of self-importance is one of the defining characteristics of narcissism which entails more than just arrogance, but an unrealistic sense of superiority, leading to an exaggeration of their achievements and talents.
Conversely, a low level of narcissism implies a lack of grandiosity, with a lower likelihood to exaggerate achievements and talents, or to look for excessive admiration.
Furthermore, individuals with high narcissistic tendencies also believe in a unique status,
and thus, will show tendencies to need excessive admiration. I propose that the moderating effect
of narcissism acts as follows. An alliance manager perceives that the partner organisation in the
alliance with a different organizational identity to have different norms and values to their own
and hence is more likely to attribute unfavourable feelings towards the partner organisation in the
alliance. For those with a high narcissistic tendency, these perceptions of having to work with
people with different norms and values, are exacerbated by their own need to maintain a personal
sense of grandiosity. Strong differences in organizational identity for these alliance managers are
a cause or uncertainty as these could harm their self-concept. Thereby, these beliefs prevalent
amongst individuals with narcissistic tendency might incite an individual’s sense of superiority.
Further, alliance managers with narcissistic tendencies are more likely to compare themselves under terms of uncertainty and use this for self-enhancement purposes (Bogart, Benotsch, & Pavlovic, 2004). Strategic alliance as a partnership of independent organisations contains a high level of uncertainty, and it is then expected that alliance managers with high narcissistic tendencies would compare and look down to their partner to self-enhance themselves.
By self-enhancing, narcissist alliance managers’ sense of superiority thus is strengthened. Thus, I expect that the relationship of identity and trust in strategic alliance mediated by the sense of superiority are moderated by the level of narcissistic tendencies.
H
5: The alliance manager’s narcissistic tendencies moderate the relationship between organisational identity and sense of superiority. As the level of the alliance manager’s narcissistic tendency increases (decreases), the alliance manager’s narcissistic tendencies moderate the relationship between organisational identity (similar versus different) and sense of superiority.
Figure 1. Conceptual model
METHOD
Similar to other studies in the field (e.g. Harmon, Kim & Mayer, 2015; Weber & Bauman, 2019),
our hypotheses are tested using a sample from Prolific Academic. These participants have been
proven as equally reliable as lab participants, and data is of comparable quality to data from other sources (Palan & Schitter, 2018; Peer, Samat, Brandimarte & Acquisti, 2017). We test our assumptions using an experimental design.
Operationalisations and sample
I experimented with a game where participants are asked to decide if they would like to cooperate by allocating several resources to a fictitious alliance scenario (Weber & Bauman, 2017). The game is conducted in four rounds to create a longitudinal view of trust. Participants will be bachelor students in their last year, master’s students and graduates, along with professionals working in a managerial position. The data were collected through Qualtrics for its pilot launch and Prolific for the second official launch of the study. Before experimenting on a larger scale, I conducted a pilot run for the study via Qualtrics.
The pilot study itself gained 89 participants, of which, 53 were excluded as they did not finish the study. The total number of participants for the pilot study was 36 people. The final sample consists of 15 (41.7%) males and 21 (58.3%) females, with an average age of 23 (M
age= 23.3, SD = 1.98). The participants came from 4 countries, and most participants are from the Indonesia (86.1%), followed by Germany (8.3%). Further, the majority of the participants have completed bachelor’s degree in college (75%).
At the beginning of the study, participants are told that they will be participating in a game
where they will play out several cases on resource sharing and at the end, to fill several questions
regarding their personal characteristics. The participants are notified that they will assume the role
of an alliance manager of one of two companies; OMEGA and ALPHA and are presented with the
background of the companies along with the alliance managers’ backstory in the company. Then,
participants were randomly assigned to one of three conditions; baseline condition as a control
condition where they are not presented the companies’ identity, similar identity condition and different identity condition where they will read on the companies’ identity. Further, the participants can also be exposed to either the original or the counterbalance condition where depending on their assignment; they will read either the original or reversed company identity.
This counterbalancing was done to eliminate other plausible explanation for the relationship; in this case, if a participant would be attached to their assigned company due to their name or due to the order in which their company’s goals are shown first. After reading the companies’ identity description, they are presented with the rules of the game and fill out questions regarding the rules of the game. Then after, are asked to wait and told that they had been assigned to company OMEGA.
Before the rounds of the game starts, the participants are shown the identity of the companies according to their assigned condition and to fill in a short questionnaire to see the difference in their perceived similarity or differences of the appointed company. After, they responded to statements regarding the organisation they are assigned to (OMEGA) and whether they perceive OMEGA as superior. Then, they went through four rounds of resource sharing game.
Round 1 introduced the initial trust for the participants and the outcome of the investment is split
into half. In round 2, where participants have formed their trust, I performed a trust breach where
the partner organisation in the alliance takes ¾ of the resources. In round 3, the amount of
investment would be the participants’ reaction to breach of trust and round 4 is the repair of the
trust itself. Finally, participants were asked to fill in their descriptive data, and the participants are
asked to respond to some statements which will gauge their trust propensity and level of
narcissistic tendencies. At the end of the study, they are told of the purpose of the research and
which aspects of the strategic alliance the study is examining.
Manipulation
Participants are told that they will be randomly assigned to either one of two fictitious companies. They underwent the study in either one of the three different conditions; baseline condition, similar identity condition, and different identity condition, however, I exclude the baseline condition for my main analysis. To test that the manipulation of the independent variable causes results, I applied a manipulation check. The participants are presented the identity of the two companies depending on which conditions they are assigned to. After reading the identities, I asked the participants to mention the most striking similarity or difference between the two companies. From this open-ended question, the manipulation was proven to be working, and I saw differences in their written answers. Participants with baseline conditions mention that both of the companies are similar as they were not presented with any other information other than the fact that the two companies are identical in size and founding year. Participants with different conditions noted the mentioned difference in identities; subsequently, those that are assigned to the similar identity condition stated how similar the identity among the two companies are.
Furthermore, I used the organisational identification scale Ashfort & Mael (1992) to test whether people experience a significantly different degree of identification. A one-way between subjects’ ANOVA was conducted, between group results (F (2,238) = 5.251, p = 0.023)and the results of post-hoc comparisons using the Tukey HSD test indicated that the mean score for the similar identity condition (M = 3.43, SD = 0.57) was significantly different than the different identity condition (M = 3.13, SD = 0.54).
Variables
Independent variable: Extent of Identity Similarity and Difference
Measured with the dummy variable of Organisational Identity with 0 = similar identity, and 1 = different identity. This variable was formulated from whether participants were assigned to the similar identity condition or the different identity condition.
Moderator: Level of narcissism
In examining the level of narcissism, the participants are asked to fill a short personality test consisting of 16 questions measuring several narcissistic tendency adapted from the narcissism NPI (narcissistic personality inventory), a questionnaire by Ames, Rose, & Anderson (2006) based on the DSM-IV criteria consisting of 16 items to measure narcissism. The items are measured on a 5-point Likert scale. Reliability analysis of the questions showed a high result with Cronbach's α of 0.839.
Mediator: Sense of superiority
This measure is adapted from the components of the perceived organisational prestige by Ashforth & Mael (1992). Six items were selected to evaluate the perceived superiority of presented company. The items were chosen to the extent to which it is appropriate and suitable for the study.
Whereby Mael and Ashforth focus on schools, in this study, we focus on companies and thus, participants are asked to provide their assessment for if they were to work in the company.
Example of the item is “X is considered one of the best companies”, the question is presented with the notion that it is measured with the partner company in mind from the information presented previously to them. The questions are measured on a 5- point Likert scale (5 = strongly agree to 1
= strongly disagree). With a Cronbach's α = 0.778, this implies that the items used to measure the
sense of superiority were reliable, and it measures the same construct. All six items can be summed
up to measure participants’ perceived superiority of presented company.
Dependent Variable: Trust
Trust is measured by the amount of investment in the strategic alliance; this measurement is derived from the trust game of Weber and Bauman (2017). The measure of trust in this experiment is a behavioural measure of trust. Each round, the participants decides how many of their available resources they would invest in the alliance. Any of the resources that are invested grows, but the alliance manager of the partner organisation decides how many to share. This way, I can observe how contracts affected participants’ willingness to invest their resources under the control of their exchange partners. Thereby, the trust game creates a measure of trusting behaviour that is consistent with the definition of trust as a willingness to be vulnerable. Participants went through 4 rounds of investment games. The more investment that the participants invested indicates more trust in the partner company.
Control Variable
To control across participants, we control for gender (0 = male, 1 = female), and education (1 = some college but no degree, 2 = Bachelor’s degree in college, 3 = Master’s degree, 4 = Doctoral degree, 5 = Professional degree) as potential variables that may explain variation.
Data management plans
The collection of the necessary data is going to be done through Qualtrics. Data that are obtained will then be owned and deposited with the repository on the University of Groningen. I, as the principal investigator of the project, take responsibility for the collection, management, and sharing of the research data. The information mined from the data collection will not contain private information, except for the age and gender of the participant.
The data collected consists of the behavioural pattern, tendencies, and option selection of the
participants through various scenarios. The data conformed to the best practices and standards, and
the following language will be used in the informed consent: “The information in this study will only be used in ways that will not reveal who you are. You will not be identified in any publication from this study or in any data files shared with other researchers. Your participation in this study is confidential”.
RESULTS
Descriptive and Correlation Analysis
Table 1 (See Appendix D), a total of 280 participants took part in the experiment. Of which 39 were excluded because they did not finish the survey. Thus, 241 participants were included in the final analysis. The final sample consists of 129 (53.5%) males and 112 (46.5%) females, with an average age of 32 (M
age= 32.04, SD = 11.32). The participants came from 25 countries, and most participants are from the United Kingdom (31.5%), followed by the United States of America (27%). Further, the majority of the participants have completed some college with no degree (42.3%). Additionally, I ran a correlation analysis between gender, education, identity, level of narcissism, sense of superiority, and level of trust. The full results of this analysis can be found in Table 1. The result reveals that there is a significantly positive relationship
1between identity and level of trust of the participants.
Control Variable
Gender
In order to analyse whether or not the average trust result of men is different from the average trust result of women, I performed an independent samples t-test with gender and trust.
1