A Capability-Based Perspective on the Relationship Between Interorganizational Trust and Organizational Outcomes: Evidence from the Indonesian Futures Brokerage Industry

Interorganizational trust constitutes a foundational pillar of relational governance that facilitates coordination and enhances organizational performance. However, recent scholarly debate suggests that an overreliance on trusted interorganizational relationships may engender unintended counterproductive consequences. Integrating Social Exchange Theory (SET) and the Knowledge-Based View (KBV) through a capability-based perspective, this study examines a capability-based mechanism through which interorganizational trust influences firm performance via the mediating role of problem-solving capability (PSC). Based on a census dataset of all 48 licensed futures brokerage firms operating under the Jakarta Futures Exchange (JFX), primary survey data gathered from Chief Executive Officers were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The empirical evidence indicates that interorganizational trust is negatively associated with both problem-solving capability and firm performance. In contrast, problem-solving capability is positively related to firm performance and likely to significantly mediate the relationship between interorganizational trust and firm performance. These findings suggest that the organizational implications of relational trust are better understood by examining the internal adaptive capabilities that transform relational resources into firm performance. From this capability-based standpoint, problem-solving capability serves as a critical internal mechanism linking external relational conditions to organizational performance. Meanwhile, the concept of capability erosion offers a plausible theoretical explanation for how excessive reliance on relational support may reduce organizations’ incentives to sustain internal problem-solving capability. Overall, this paper contributes to the relational governance literature by providing a capability-based perspective on the dark side of interorganizational trust, offering practical insights for industry executives and market regulators on balancing relational governance with internal capability development.