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Perceived trustworthiness and inter-firm governance: empirical evidence from the UK printing industry

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  • Guido M–llering

Abstract

The paper describes six representative theoretical positions regarding the impact of trustworthiness on the organisation of inter-firm relations. The positions are then assessed on the basis of a survey of 184 buyer--supplier relationships in the UK printing industry. The widely accepted transaction cost argument for trust as a parameter reducing hierarchy is dismissed. Instead, the so-called triadic forces argument based on Bradach, J. L. and Eccles, R. G. (1989. Price, authority and trust: from ideal types to plural forms, Annual Review of Sociology , vol. 15, 96--118) receives the strongest support. Market, hierarchy and trust represent alternative mechanisms that can be combined in a variety of ways. This pluralistic model is enriched further by the acknowledgement of variable roles for contracts and a sceptic stance regarding rationality in practice. Copyright 2002, Oxford University Press.

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  • Guido M–llering, 2002. "Perceived trustworthiness and inter-firm governance: empirical evidence from the UK printing industry," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 26(2), pages 139-160, March.
    • Handle: RePEc:oup:cambje:v:26:y:2002:i:2:p:139-160
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