Pack Tech, Dubai: Does Trust Exist in Business Relationships?

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Pack Tech, Dubai: Does Trust Exist in Business Relationships?: Abstract

Faced with increasing uncertainty, complexity and turbulence in the business environment, building and maintaining trust in business relationships has become a new challenge for managers. Trust is considered a means to develop cooperative relationships, lower partnership risk, reduce transaction costs and increase transparency in information sharing. However, there is also abundant skepticism among managers about whether « trust alone » can ensure a successful close relationship between partners.

Pack Tech is a family-owned, medium-sized flexible packaging material converting company based in Jebel Ali Free Zone, Dubai, United Arab Emirates (UAE). The company exports its products to 20 countries and imports its raw materials from five countries. The case describes the situations that led to the breakdown of Pack Tech’s relationship with an Iranian agent, Sri Lankan customer and an aluminium foil supplier from Greece. The case also highlights a tough situation currently facing the company’s General Manager, Riyaz, involving one of this UAE-based printing ink suppliers.

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Teaching notes are available for professors. Contact the HEC Montréal Case Centre.