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The impact of trust on the mode of transaction governance between manufacturer and distributor

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  • Berulava George

    ()

  • Lezhava David

    ()

Abstract

The goal of the project is to explore main determinants of transaction governance mode between manufacturer and distributor firms. The model proposed in this paper integrates the concept of trust with main transaction cost economics’ dimensions and is formulated in the form of multinomial logit function. The model will be estimated with data from a sample of Georgian manufacturing industry. The main hypothesis of the study is that trust will modify the influence of traditional transaction cost economics dimensions on the choice of exchange governance mode.

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Bibliographic Info

Paper provided by EERC Research Network, Russia and CIS in its series EERC Working Paper Series with number 07-05e.

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Date of creation: 06 Nov 2007
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Handle: RePEc:eer:wpalle:07-05e

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