Trust and Institutions

ConTrust Speaker Series 2023

Prof Reinhard Bachmann (University of London)

Moderation: Prof. Dr. Vinzenz Hediger (Goethe-Universität, ConTrust)

This paper analyses trust as a means to coordinate interorganizational relationships. It is argued that, depending on institutional environments, trust-based relationships play out in distinct patterns in different business systems. It will be shown that institutions have a crucial influence on the form, amount and intensity of trust building processes in inter-organizational relationships and, hence, shape the quality of relationships between organizations. The argument will draw on Systems Theory, Structuration Theory and New Institutionalism. The analysis of empirical examples used to support the argument will informed by comparative perspectives as suggested by the Political Economy literature.

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