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Trust, Control, and Value Creation in Strategic Networks of SMEs

Author

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  • Fabio Antoldi

    (Department of Economic and Social Sciences, Università Cattolica del Sacro Cuore, Via Emilia Parmense 84, 29122 Piacenza, Italy)

  • Daniele Cerrato

    (Department of Economic and Social Sciences, Università Cattolica del Sacro Cuore, Via Emilia Parmense 84, 29122 Piacenza, Italy)

Abstract

This paper investigates the role of trust and control in networks of small and medium-sized enterprises (SMEs), with a focus on both their direct and interaction effects on value creation. To delve into the interplay between trust and control, we unpack control mechanisms into three different forms: output, process, and social control. Our hypotheses are tested on a sample of 58 Italian SME networks based on formal agreements. Results show that the competitiveness and sustainability of inter-firm networks require trust-based relationships among entrepreneurs. Additionally, the adoption of output control mechanisms reinforces the positive link between trust and value creation, whereas a substitution effect exists between trust and process control and, with limited significance, between trust and social control.

Suggested Citation

  • Fabio Antoldi & Daniele Cerrato, 2020. "Trust, Control, and Value Creation in Strategic Networks of SMEs," Sustainability, MDPI, vol. 12(5), pages 1-20, March.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:5:p:1873-:d:327302
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