When does goodwill trust matter in interfirm new product development?

This study explores the impact goodwill trust has on new product development performance in 177 interfirm projects. Whereas the findings suggest that the relationship between goodwill trust and project performance is non-linear, they also reveal that the environmental context of the project
(i.e. the degree of task interdependency) influences this relationship. In particular, we find an attenuated positive curve between goodwill trust and project innovation performance for modular innovation projects (projects with limited task interdependency), whereas the relationship becomes U-shaped for architectural innovation projects (projects with very high task interdependency). Jointly, our findings contribute to a more contingent perspective on the role of trust in inter-firm relationships, emphasizing that the benefits and liabilities of goodwill trust are likely to be different for different kinds of innovation projects.