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

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  • Martino, Gaetano

Abstract

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.

Suggested Citation

  • Martino, Gaetano, 2010. "Trust, contracting, and adaptation in agri-food hybrid structure," MPRA Paper 37617, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:37617
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    File URL: https://mpra.ub.uni-muenchen.de/37617/1/MPRA_paper_37617.pdf
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    References listed on IDEAS

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    Cited by:

    1. Martino, Gaetano & Frascarelli, Angelo, 2012. "Adaptation in Food Networks: Theoretical Frame Work and Empirical Evidences," 2012 International European Forum, February 13-17, 2012, Innsbruck-Igls, Austria 144981, International European Forum on System Dynamics and Innovation in Food Networks.

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    More about this item

    Keywords

    hybrid; conditional trust; adaptation; contractual relationship;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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