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Trust and inter-firm relations in developing and transition economies

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  • John Humphrey
  • Hubert Schmitz
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    Abstract

    The role of trust in facilitating economic growth has been highlighted in previous contributions to this journal. In order to take this debate forward, this article argues (1) that more attention needs to be given to the relationship between sanctions and trust, and (2) that it is worth distinguishing between the minimal trust for making markets effective and the extended trust required for deeper kinds of inter-firm co-operation to work. The article goes on to ask why minimal trust is lacking and so hard to construct in the republics of the former Soviet Union. It then examines how extended trust grows or can be made to grow in industrial supply chains and clusters in developing countries.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/00220389808422528
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

    Volume (Year): 34 (1998)
    Issue (Month): 4 ()
    Pages: 32-61

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    Handle: RePEc:taf:jdevst:v:34:y:1998:i:4:p:32-61

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    Cited by:
    1. Knorringa, Peter, 1999. "Agra: An Old Cluster Facing the New Competition," World Development, Elsevier, vol. 27(9), pages 1587-1604, September.
    2. Morosini, Piero, 2004. "Industrial Clusters, Knowledge Integration and Performance," World Development, Elsevier, vol. 32(2), pages 305-326, February.
    3. Globerman, Steven & Shapiro, Daniel, 2002. "Global Foreign Direct Investment Flows: The Role of Governance Infrastructure," World Development, Elsevier, vol. 30(11), pages 1899-1919, November.
    4. World Bank, 2005. "The Dynamics of Vertical Coordination in Agrifood Chains in Eastern Europe and Central Asia : Implications for Policy and World Bank Operations," World Bank Other Operational Studies 8806, The World Bank.
    5. Demeter, Krisztina & Gelei, Andrea & Jenei, Istvan, 2006. "The effect of strategy on supply chain configuration and management practices on the basis of two supply chains in the Hungarian automotive industry," International Journal of Production Economics, Elsevier, vol. 104(2), pages 555-570, December.
    6. Kozan, M. Kamil & Wasti, S. Nazli & Kuman, Ayca, 2006. "Management of buyer-supplier conflict: The case of the Turkish automotive industry," Journal of Business Research, Elsevier, vol. 59(6), pages 662-670, June.
    7. Effie Kesidou & Marjolein Caniels & Henny Romijn, 2007. "Mechanisms of Local Knowledge Spillovers: Evidence from the Software Cluster in Uruguay," Working Papers 07-02, Eindhoven Center for Innovation Studies, revised Feb 2007.
    8. Joanna Chataway & David Wield, 2000. "Industrialization, innovation and development: what does knowledge management change?," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(6), pages 803-824.
    9. Overa, Ragnhild, 2006. "Networks, distance, and trust: Telecommunications Development and changing trading practices in Ghana," World Development, Elsevier, vol. 34(7), pages 1301-1315, July.
    10. Pauline Ratnasingam, 2013. "A Generic Framework for Trust in the Innovation Process," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 5(1), pages 71-90, April.
    11. Masuku, Micah B. & Kirsten, Johann F., 2003. "The Role Of Trust In The Performance Of Supply Chains: A Dyad Analysis Of Smallholder Farmers And Processing Firms In The Sugar Industry In Swaziland," 2003 Annual Conference, October 2-3, 2003, Pretoria, South Africa 19086, Agricultural Economic Association of South Africa (AEASA).
    12. Sanjaya Lall, . "Social Capital and Industrial Transformation," QEH Working Papers qehwps84, Queen Elizabeth House, University of Oxford.
    13. Laura Taylor & Mary Wrenn, 2003. "Forging new relationships: Social capital in the transistion," Forum for Social Economics, Springer, vol. 33(1), pages 1-11, September.
    14. Kshetri, Nir & Dholakia, Nikhilesh, 2009. "Professional and trade associations in a nascent and formative sector of a developing economy: A case study of the NASSCOM effect on the Indian offshoring industry," Journal of International Management, Elsevier, vol. 15(2), pages 225-239, June.
    15. Juliane Brach & Robert Kappel, 2009. "Global Value Chains, Technology Transfer and Local Firm Upgrading in Non-OECD Countries," GIGA Working Paper Series 110, GIGA German Institute of Global and Area Studies.
    16. Joanna Paliszkiewicz, 2013. "The Importance of Building and Rebuilding Trust in Organizations," Diversity, Technology, and Innovation for Operational Competitiveness: Proceedings of the 2013 International Conference on Technology Innovation and Industrial Management, ToKnowPress.
    17. Ozlem Ozkanli & Erkan Erdil & Erdal Akdeve, 2008. "Innovation And Relationships In Industrial Districts: The Case Of Turkey," STPS Working Papers 0801, STPS - Science and Technology Policy Studies Center, Middle East Technical University, revised Aug 2008.
    18. Erkan Erdil & Dilek Cetin, 2008. "Innovation and Relationships in an Organized Indutrial District: Ankara Sincan Industrial District," STPS Working Papers 0802, STPS - Science and Technology Policy Studies Center, Middle East Technical University, revised Aug 2008.
    19. Keshab Das, 2007. "Industrial Clusters in India: Perspectives and Issues for Research," Working Papers id:1028, eSocialSciences.
    20. Viswanathan, Madhu & Sridharan, Srinivas & Ritchie, Robin, 2010. "Understanding consumption and entrepreneurship in subsistence marketplaces," Journal of Business Research, Elsevier, vol. 63(6), pages 570-581, June.
    21. Kennedy, Loraine, 1999. "Cooperating for Survival: Tannery Pollution and Joint Action in the Palar Valley (India)," World Development, Elsevier, vol. 27(9), pages 1673-1691, September.
    22. Pitelis, Christos & Pseiridis, Anastasia, 2007. "A Conceptual Framework for Firm Cooperation and Clusters and Their Impact on Productivity and Competitiveness," Papers DYNREG13, Economic and Social Research Institute (ESRI).
    23. Arne Wiig, 2004. "Risk and disintermediation in tourism," CMI Working Papers WP 2004: 6, CMI (Chr. Michelsen Institute), Bergen, Norway.

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