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Trust, contracting, and adaptation in agri-food hybrid structure

  • Martino, Gaetano
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    The paper considers the relationship between trust and governance structure from a Transaction Cost Economics perspective. The role of trust in the coordinating decisions is variously conceptualized according to the theoretical view adopted by the scholars. The present study adopt the three‐level schema introduced by Williamson (1996) and suggest that determinants of trust may operate both at institutional and governance structure level. The analytical framework depicted maintains that trust may determine a reduction of ex post transaction cost in the adaptation of hybrid structure. As a consequence trust appears to be able to extend the range of existence of the hybrids. The empirical part of the study is dedicated to a case study which illustrates the emerging of conditional trust (Fritz et al., 2008) and the role of trust in the adaptation process.

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    File URL: http://mpra.ub.uni-muenchen.de/37617/1/MPRA_paper_37617.pdf
    File Function: original version
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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 37617.

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    Date of creation: 2010
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    Publication status: Published in International Journal on Food System Dynamics 4.1(2010): pp. 305-317
    Handle: RePEc:pra:mprapa:37617
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    Web page: http://mpra.ub.uni-muenchen.de

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    1. Sophie Réviron & Jean-Marc Chappuis, 2005. "Effects of the Swiss retailers' strategy on the governance structure of the fresh food products supply chains," Agribusiness, John Wiley & Sons, Ltd., vol. 21(2), pages 237-252.
    2. Sako, Mari & Helper, Susan, 1998. "Determinants of trust in supplier relations: Evidence from the automotive industry in Japan and the United States," Journal of Economic Behavior & Organization, Elsevier, vol. 34(3), pages 387-417, March.
    3. Chen, Yongmin, 2000. "Promises, Trust, and Contracts," Journal of Law, Economics and Organization, Oxford University Press, vol. 16(1), pages 209-32, April.
    4. Claude Ménard, 2005. "New institutions for governing the agri-food industry," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 32(3), pages 421-440, September.
    5. A. Pyka, 2007. "Innovation Networks," Chapters, in: Elgar Companion to Neo-Schumpeterian Economics, chapter 23 Edward Elgar.
      • Tobias Buchman & Andreas Pyka, 2012. "Innovation Networks," Chapters, in: Handbook on the Economics and Theory of the Firm, chapter 33 Edward Elgar.
    6. Williamson, Oliver E, 1993. "Calculativeness, Trust, and Economic Organization," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 453-86, April.
    7. Lorenz, Edward, 1999. "Trust, Contract and Economic Cooperation," Cambridge Journal of Economics, Oxford University Press, vol. 23(3), pages 301-15, May.
    8. Lyons, Bruce R & Mehta, Judith, 1997. "Contracts, Opportunism and Trust: Self-Interest and Social Orientation," Cambridge Journal of Economics, Oxford University Press, vol. 21(2), pages 239-57, March.
    9. Arrighetti, Alessandro & Bachmann, Reinhard & Deakin, Simon, 1997. "Contract Law, Social Norms and Inter-firm Cooperation," Cambridge Journal of Economics, Oxford University Press, vol. 21(2), pages 171-95, March.
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