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Trustworthiness As An Economic Asset

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  • Wilson, Paul N.
  • Kennedy, Ana M.
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    Abstract

    The evaluation of trust in economic decision making remains on the periphery of mainstream economic analysis and teaching. Yet business managers use trustworthiness in daily exchanges to create competitive advantages for their firms. An exploratory empirical test of Barney and HansenÂ’s three levels of trust (weak, semistrong, and strong) and Lewicki and BunkerÂ’s portfolio of governance mechanisms revealed that strong-form trust exists in day-to-day business relationships along with other governance mechanisms. Identity-based transactions were more prevalent than were weak trust market exchanges in important economic transactions.

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    File URL: http://purl.umn.edu/34213
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    Bibliographic Info

    Article provided by International Food and Agribusiness Management Association (IAMA) in its journal International Food and Agribusiness Management Review.

    Volume (Year): 02 (1999)
    Issue (Month): 02 ()
    Pages:

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    Handle: RePEc:ags:ifaamr:34213

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    Related research

    Keywords: Institutional and Behavioral Economics; International Relations/Trade;

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    1. Sterns, James A. & Schweikhardt, David B. & Peterson, H. Christopher, 1998. "Using Case Studies As An Approach For Conducting Agribusiness Research," Staff Papers 11545, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. Williamson, Oliver E, 1993. "Calculativeness, Trust, and Economic Organization," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 453-86, April.
    3. Burchell, Brendan & Wilkinson, Frank, 1997. "Trust, Business Relationships and the Contractual Environment," Cambridge Journal of Economics, Oxford University Press, vol. 21(2), pages 217-37, March.
    4. Ottati, Gabi Dei, 1994. "Trust, Interlinking Transactions and Credit in the Industrial District," Cambridge Journal of Economics, Oxford University Press, vol. 18(6), pages 529-46, December.
    5. Nooteboom, B. & Berger, H. & Noorderhaven, N.G., 1997. "Effects of trust and governance on relational risk," Open Access publications from Tilburg University urn:nbn:nl:ui:12-73834, Tilburg University.
    6. Gardner, B. Delworth, 1995. "Discussion On Social Capital," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(01), July.
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    Cited by:
    1. Jose Blandon & Spencer Henson & John Cranfield, 2009. "Small-scale farmer participation in new agri-food supply chains: Case of the supermarket supply chain for fruit and vegetables in Honduras," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(7), pages 971-984.
    2. Jackson, Elizabeth & Quaddus, Mohammed & Islam, Nazrul & Stanton, John & Hoque, Zohurul, 2007. "A Multi-Disciplinary Approach For Determining Adoption Of Agricultural Price Risk Management Strategies," 81st Annual Conference, April 2-4, 2007, Reading University 7985, Agricultural Economics Society.
    3. Robison, Lindon J. & Schmid, A. Allan & Barry, Peter J., 2002. "The Role of Social Capital in the Industrialization of the Food System," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 31(1), April.

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