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The economic nature of network capital in B2B transactions

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  • Paul N. Wilson

    (Department of Agricultural and Resources Economics, University Of Arizona, Tucson, AZ 85721-0023)

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    Abstract

    Social scientists, including numerous economists, have explored the incidence and importance of social capital embedded networks as a governance mechanism in business operations. The buyer-seller dyads represented by 12 large-scale dairies and 7 feed suppliers were studied to contribute to our understanding of network capital in business-to-business (B2B) transactions. A high incidence of institutional and personal trust was found in these buyer-seller networks. Trust facilitates economic exchange through uncertainty management, information sharing, and time savings. [L140, Q120]. © 2007 Wiley Periodicals, Inc. Agribusiness 23: 435-448, 2007.

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    File URL: http://hdl.handle.net/10.1002/agr.20132
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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

    Volume (Year): 23 (2007)
    Issue (Month): 3 ()
    Pages: 435-448

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    Handle: RePEc:wly:agribz:v:23:y:2007:i:3:p:435-448

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    Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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    1. Rademakers, Martijn F.L., 2000. "Agents Of Trust: Business Associations In Agri-Food Supply Systems," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 3(02).
    2. Susan Helper, 2000. "Economists and Field Research: "You Can Observe a Lot Just by Watching."," American Economic Review, American Economic Association, vol. 90(2), pages 228-232, May.
    3. Coleman, James S, 1984. "Introducing Social Structure into Economic Analysis," American Economic Review, American Economic Association, vol. 74(2), pages 84-88, May.
    4. Harvey James, 2002. "The Trust Paradox: A Survey of Economic Inquiries Into the Nature of Trust and Trustworthiness," Microeconomics 0202001, EconWPA.
    5. Nooteboom, Bart, 1999. "Innovation and inter-firm linkages: new implications for policy," Research Policy, Elsevier, vol. 28(8), pages 793-805, November.
    6. Lorenz, Edward, 1999. "Trust, Contract and Economic Cooperation," Cambridge Journal of Economics, Oxford University Press, vol. 23(3), pages 301-15, May.
    7. James Jr., Harvey S., 2002. "The trust paradox: a survey of economic inquiries into the nature of trust and trustworthiness," Journal of Economic Behavior & Organization, Elsevier, vol. 47(3), pages 291-307, March.
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