International joint ventures (IJVs) are inherently risky with high failure and instability rates. To explain IJVs success, several authors extend the primarily calculate self-interest rationale of transaction cost theory. They suggest that the successful IJVs require a social psychological basis of cooperation, and argue that cooperation becomes efficient when the mutual hostage position of the relationship evolves into a relationship based on trust and relationship commitment. We argue that trust and relationship commitment can reduce opportunistic behaviors, improve IJVs performance, and overcome some of the numerous problems associated with the operation of an IJVs. In this study, we theorize that successful IJVs relationship requires relationship commitment and trust, and we investigate the antecedents and consequences of relationship commitment and trust in IJVs from the local partner's perspective.