Trust in Japanese Interfirm Relations: Institutional Sanctions Matter

James M. Hagen and Soonkyoo Choe

No 127874, Working Papers from Cornell University, Department of Applied Economics and Management

Abstract: Trust is a critical component of interfirm relations, and scholars have pointed to Japan as an environment where trusting relationships flourish. In looking for environmental characteristics important for enabling and sustaining trust in Japan, we propose that a critical role is played by a combination of institutional and societal sanctions. Examination of Japanese subcontracting practices allows an elaboration of these sanctions and their interplay. We recommend further focus on sanctions in exploring interfirm trust issues.

Keywords: Institutional; and; Behavioral; Economics (search for similar items in EconPapers)
Pages: 28
Date: 1997-10
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Persistent link: https://EconPapers.repec.org/RePEc:ags:cudawp:127874

DOI: 10.22004/ag.econ.127874

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