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

  • Ayşe Elif Şengün
  • �etin �nder
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    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.

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    File URL: http://hdl.handle.net/10.1080/13662716.2011.621746
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    Article provided by Taylor & Francis Journals in its journal Industry and Innovation.

    Volume (Year): 18 (2011)
    Issue (Month): 8 (November)
    Pages: 791-812

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    Handle: RePEc:taf:indinn:v:18:y:2011:i:8:p:791-812
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    1. Parkhe, Arvind, 1998. "Understanding trust in international alliances," Journal of World Business, Elsevier, vol. 33(3), pages 219-240, October.
    2. 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, vol. 35(5), pages 428-442, September.
    3. Bönte, Werner, 2008. "Inter-firm trust in buyer-supplier relations: Are knowledge spillovers and geographical proximity relevant?," Journal of Economic Behavior & Organization, Elsevier, vol. 67(3-4), pages 855-870, 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.
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