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The Conditional Impact of Competence Trust on Inter-Firm Learning in a Collectivist SME Context

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  • Ayşe Elif Şengün
  • Çetin Önder

Abstract

This study investigates the interactive influence of competence and goodwill trust on inter-firm learning. The study examines whether goodwill trust moderates the relationship between competence trust and inter-firm learning. Although earlier research points to an additive effect of competence and goodwill trust on inter-firm learning, this study hypothesizes an interactive effect of the two trust types. The study's basic premise is that, in collectivist contexts characterized with a weak legal system, goodwill trust determines the efficacy of competence trust. Empirical tests of this hypothesis involve data collected from 158 small-scale manufacturers of furniture located in Turkey. Initial empirical analysis shows that whereas goodwill trust has a positive main effect on inter-firm learning, competence trust does not. Introducing an interaction term reveals that competence trust positively influences inter-firm learning only when goodwill trust is high. Additionally, cluster analysis indicates that inter-firm learning is lowest when both competence trust and goodwill trust are low and highest when both forms of trust are high.

Suggested Citation

  • Ayşe Elif Şengün & Çetin Önder, 2011. "The Conditional Impact of Competence Trust on Inter-Firm Learning in a Collectivist SME Context," Industry and Innovation, Taylor & Francis Journals, vol. 18(8), pages 791-812, November.
  • Handle: RePEc:taf:indinn:v:18:y:2011:i:8:p:791-812
    DOI: 10.1080/13662716.2011.621746
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    References listed on IDEAS

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    1. Luo, Yadong, 2006. "Opportunism in Inter-firm Exchanges in Emerging Markets," Management and Organization Review, Cambridge University Press, vol. 2(01), pages 121-147, March.
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    3. Charles Dhanaraj & Marjorie A Lyles & H Kevin Steensma & Laszlo Tihanyi, 2004. "Managing tacit and explicit knowledge transfer in IJVs: the role of relational embeddedness and the impact on performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(5), pages 428-442, September.
    4. Yadong Luo, 2006. "Opportunism in Inter-firm Exchanges in Emerging Markets," Management and Organization Review, International Association of Chinese Management Research, vol. 2(1), pages 121-147, March.
    5. Giacomo Becattini & Marco Bellandi & Gabi Del Ottati & Fabio Sforzi, 2003. "From Industrial Districts to Local Development," Books, Edward Elgar Publishing, number 2884.
    6. Parkhe, Arvind, 1998. "Understanding trust in international alliances," Journal of World Business, Elsevier, vol. 33(3), pages 219-240, October.
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