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Social capital, institutions and trust

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  • Bart Nooteboom

Abstract

This paper analyzes the relations between social capital, institutions, and trust. These concepts are full of ambiguity and confusion. This paper attempts to dissolve some of the confusion, by distinguishing trust and control, and analyzing institutional and relational conditions of trust. It presents a tool for the analysis of the foundations of trust, and a diagnosis of its strength and viability.

Suggested Citation

  • Bart Nooteboom, 2007. "Social capital, institutions and trust," Review of Social Economy, Taylor & Francis Journals, vol. 65(1), pages 29-53.
  • Handle: RePEc:taf:rsocec:v:65:y:2007:i:1:p:29-53 DOI: 10.1080/00346760601132154
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    References listed on IDEAS

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    1. Wuyts, Stefan & Colombo, Massimo G. & Dutta, Shantanu & Nooteboom, Bart, 2005. "Empirical tests of optimal cognitive distance," Journal of Economic Behavior & Organization, Elsevier, pages 277-302.
    2. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1251-1288.
    3. Bruno S. Frey & Alois Stutzer, 2002. "What Can Economists Learn from Happiness Research?," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 402-435, June.
    4. Nooteboom, B. & Berger, H. & Noorderhaven, N.G., 1997. "Effects of trust and governance on relational risk," Other publications TiSEM 8e83932e-064c-40e8-afe7-4, Tilburg University, School of Economics and Management.
    5. Krug, B., 2000. "Ties That Bind: the emergence of entrepreneurs in China," ERIM Report Series Research in Management ERS-2000-44-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
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    Cited by:

    1. repec:kap:jtecht:v:42:y:2017:i:4:d:10.1007_s10961-016-9544-x is not listed on IDEAS
    2. M. Savioli & R. Patuelli, 2016. "Social capital, institutions and policymaking," Working Papers wp1070, Dipartimento Scienze Economiche, Universita' di Bologna.
    3. Meuleman, Miguel & Jääskeläinen, Mikko & Maula, Markku V.J. & Wright, Mike, 2017. "Venturing into the unknown with strangers: Substitutes of relational embeddedness in cross-border partner selection in venture capital syndicates," Journal of Business Venturing, Elsevier, vol. 32(2), pages 131-144.
    4. Soviana, Soviana, 2013. "Framework for Analyzing Community-Based Enterprise (CBE): Literature review of organizational architecture and organizational performance," EconStor Preprints 74719, ZBW - German National Library of Economics.
    5. Xiu-Hao Ding & Rui-Hua Huang & Dong-Lin Liu, 2012. "Resource allocation for open and hidden learning in learning alliances," Asia Pacific Journal of Management, Springer, pages 103-127.
    6. Ingrid Groessl & Rolf von Luede & Jan Fleck, 2013. "Genesis and Persistence of Trust in Banks," Macroeconomics and Finance Series 201307, Hamburg University, Department Wirtschaft und Politik.
    7. Tamilina, Larysa & Tamilina, Natalya, 2014. "The impact of formal institutions on social trust formation: A social-cognitive approach," MPRA Paper 63203, University Library of Munich, Germany.
    8. Lombardi, Alessia & Pascucci, Stefano & Cembalo, Luigi & Dentoni, Domenico, 2012. "Governance Mechanisms in Food Community Networks," 2012 International European Forum, February 13-17, 2012, Innsbruck-Igls, Austria 144980, International European Forum on Innovation and System Dynamics in Food Networks.
    9. Adnan Efendic & Tomasz Marek Mickiewicz & Anna Rebmann, 2013. "Growth Aspirations and Social Capital: Young Firms in a Post-Conflict Environment," UCL SSEES Economics and Business working paper series 122, UCL School of Slavonic and East European Studies (SSEES).
    10. Michel Zouboulakis, 2010. "Trustworthiness as a Moral Determinant of Economic Activity: Lessons from the Classics," Forum for Social Economics, Springer;The Association for Social Economics, pages 209-221.
    11. Rivera-Santos, Miguel & Rufín, Carlos, 2010. "Global village vs. small town: Understanding networks at the Base of the Pyramid," International Business Review, Elsevier, pages 126-139.
    12. Ewald Nowotny & Peter Mooslechner & Doris Ritzberger-Grünwald (ed.), 2012. "European Integration in a Global Economy," Books, Edward Elgar Publishing, number 15048, September.
    13. Paul Sanders, 2010. "Managing Under Duress: Ethical Leadership, Social Capital and the Civilian Administration of the British Channel Islands During the Nazi Occupation, 1940–1945," Journal of Business Ethics, Springer, pages 113-129.
    14. Markus Taube, 2012. "China’s shadow banking sector – pillar or threat to the system?," Chapters,in: European Integration in a Global Economy, chapter 17, pages 189-201 Edward Elgar Publishing.
    15. Fairley, Kim & Sanfey, Alan & Vyrastekova, Jana & Weitzel, Utz, 2012. "Social risk and ambiguity in the trust game," MPRA Paper 42302, University Library of Munich, Germany.
    16. Emerson, Denise & Zhou, Wei & Piramuthu, Selwyn, 2009. "Goodwill, inventory penalty, and adaptive supply chain management," European Journal of Operational Research, Elsevier, vol. 199(1), pages 130-138, November.
    17. Soviana, Soviana, 2013. "Case Survey for Assessing Community-Based Enterprise: A Research Design," EconStor Preprints 84707, ZBW - German National Library of Economics.

    More about this item

    Keywords

    social capital; trust; institutions; control; reliability;

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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