Does familiarity breed trust? Revisiting the antecedents of trust

Ranjay Gulati and Maxim Sytch
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Ranjay Gulati: Northwestern University, IL, USA, Postal: Northwestern University, IL, USA
Maxim Sytch: Northwestern University, IL, USA, Postal: Northwestern University, IL, USA

Managerial and Decision Economics, 2008, vol. 29, issue 2-3, 165-190

Abstract: This paper investigates how the history of interaction between organizations and between organizational boundary spanners contributes to the formation of trust between firms. Our findings, using data on the supplier-buyer relationships of two major US auto manufacturers, suggest that history affects trust formation in a complex non-linear fashion, involving a period of ambivalence early in a relationship. We show that certain kinds of exchange partners can systematically reap differential returns from a common history of interaction. Organizational similarity significantly enhances the ability of exchange partners to translate the benefits of the joint history of interaction into a stock of trust. Copyright © 2008 John Wiley & Sons, Ltd.

Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:29:y:2008:i:2-3:p:165-190

DOI: 10.1002/mde.1396

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