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Cambridge Journal of Economics 26:139-160 (2002)
Copyright © 2002 Cambridge Political Economy Society

Article

Perceived trustworthiness and inter-firm governance: empirical evidence from the UK printing industry

Guido Möllering

Institut für Allgemeine Betriebswirtschafteslehre, Boltzmannstr. 20, 14195 Berlin, Germany; moelleri{at}wiwiss.fu-berlin.de

Abstract

The paper describes six representative theoretical positions regarding the impact of trustworthiness on the organisation of inter-firm relations. The positions are then assessed on the basis of a survey of 184 buyer–supplier relationships in the UK printing industry. The widely accepted transaction cost argument for trust as a parameter reducing hierarchy is dismissed. Instead, the so-called triadic forces argument based on Bradach, J. L. and Eccles, R. G. (1989. Price, authority and trust: from ideal types to plural forms, Annual Review of Sociology, vol. 15, 96–118) receives the strongest support. Market, hierarchy and trust represent alternative mechanisms that can be combined in a variety of ways. This pluralistic model is enriched further by the acknowledgement of variable roles for contracts and a sceptic stance regarding rationality in practice.

Key Words: Trust • Organisation • Inter-firm relations • Managerial perception • Printing


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