The Effects of Context on Trust in Firm-Stakeholder Relationships: The Institutional Environment, Trust Creation, and Firm Performance

Andrew C. Wicks · Shawn L. Berman

75 citations0/0 files storedBusiness Ethics Quarterly

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Abstract

Abstract: Recent work on the subject speaks to the importance trust has for firm performance (e.g., Hagen and Choe, 1999; Hill, 1995). Yet little work has been done to show how context affects the ability of firms to create trust in relationships with key stakeholders. This paper looks at how the institutional environment may affect the performance of different strategies for managing firm-stakeholder relationships, and in turn, how this affects firm performance. The authors put forward propositions that build on these theoretical insights and offer prospects for future empirical work.

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References

1990Institutions, Institutional Change and Economic Performance 1985Economic Action and Social Structure: The Problem of Embeddedness 1991Institutions, Institutional Change and Economic Performance 1995An Integrative Model Of Organizational Trust 1985Competitive Advantage: Creating and Sustaining Superior Performance 1776An Inquiry into the Nature and Causes of the Wealth of Nations 1986Research in Organizational Behavior.1996Trust: The Social Virtues and the Creation of Prosperity

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