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Governance Structures and Trust: a Study of Real Estate Networks

Author

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  • Boaventura, Joao Mauricio
  • Carnaúba, A.A.C.
  • Todeva, Emanuela
  • Azevedo, A.C.
  • Armando, Eduardo

Abstract

The present study aimed at verifying how different modes of governance structure are linked to different levels of interorganisational trust. Its theoretical grounding involves Transaction Cost Theory, which studies governance of interorganisational arrangements and research on trust in the business field. A descriptive and quantitative approach has been adopted to describe the relation between trust amongst business network participants and the mode of governance adopted by the surveyed networks. Hence, a detailed questionnaire has been employed, which was answered by 35 real estate agency managers, whose participation was directly linked to 11 business networks. By using Spearman methods of identification of non-parametric correlation and correspondence analysis, it was possible to verify that certain modes of governance structure associate with different levels of trust. Considering the scarcity of quantitative research on the theme, this paper contributes to the field by presenting results which point out that collectively-managed governance of regional cooperation networks is linked to high levels of trust; whereas governance of dispersed networks with the presence of a lead company are linked to low levels of trust. Medium levels of trust were observed in networks governed by an administrative organisation. Considering the practical aspect of administration in networks, one can conclude that the process of governance structure in such interorganisational arrangements should include deliberations about the influence of the adopted mode of governance on trust amongst participants. The paper does not allow generalizations of its conclusions beyond its chosen sample.

Suggested Citation

  • Boaventura, Joao Mauricio & Carnaúba, A.A.C. & Todeva, Emanuela & Azevedo, A.C. & Armando, Eduardo, 2016. "Governance Structures and Trust: a Study of Real Estate Networks," MPRA Paper 76785, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:76785
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    References listed on IDEAS

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    Cited by:

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    2. Emanuela TODEVA & Panagiotis KETIKIDIS, 2017. "Regional Entrepreneurship and Innovation Management: Actors, Helices and Consensus Space," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 5(1), pages 57-76, March.

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    More about this item

    Keywords

    Brazil; competitiveness; governance structure; real estate networks; dimensions of trust;
    All these keywords.

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

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