Trust and its alternatives

✍ Scribed by Sharon A. Alvarez; Jay B. Barney; Douglas A. Bosse

• Book ID: 102259939
• Publisher: John Wiley and Sons
• Year: 2003
• Tongue: English
• Weight: 112 KB
• Volume: 42
• Category: Article
• ISSN: 0090-4848
• DOI: 10.1002/hrm.10097

✦ Synopsis

Abstract

Most scholarly work on trust recognizes its importance as part of a nonmarket form of governance in exchanges
between firms. However, trust is only one such governance device that can be used; other devices such as
reputation, bargaining power, and contracts can also be used to govern exchanges. This article empirically
examines the relationships between trust, reputation, bargaining power, and contracts as governance devices in
agreements between smaller entrepreneurial firms and larger, more established firms. The findings suggest that
while the role of trust is an important one, it may be more effective when combined with other governance
devices. © 2004 Wiley Periodicals, Inc.