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Development of Trust: A Study of Interfirm Relationships in Vietnam

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  • Thang Nguyen
  • Marc Weinstein
  • Alan Meyer

Abstract

The radical political and economic reforms sweeping through former socialist countries during the last decade have opened rich opportunities for privately owned businesses to emerge and develop. Since the market institutions and infrastructures in these countries are largely underdeveloped, private firms in transition economies rely extensively on interfirm partnerships. This raises the question of how—in the absence of institutions that legitimate markets, contracts, and private property—managers of new business ventures develop new relationships. This paper addresses this issue through analysis of multiple subcontracting relationships formed at a private garment company in Vietnam. This analysis suggests that firms in transition economies develop interfirm trust in ways that are quite different from their counterparts in more highly developed economies. Copyright Springer Science + Business Media, Inc. 2005

Suggested Citation

  • Thang Nguyen & Marc Weinstein & Alan Meyer, 2005. "Development of Trust: A Study of Interfirm Relationships in Vietnam," Asia Pacific Journal of Management, Springer, vol. 22(3), pages 211-235, September.
    • Handle: RePEc:kap:asiapa:v:22:y:2005:i:3:p:211-235
    DOI: 10.1007/s10490-005-3567-4
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    References listed on IDEAS

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    4. Haiyue Liu & Jie Jiang & Lei Zhang & Xiaolan Chen, 2018. "OFDI Agglomeration and Chinese Firm Location Decisions under the “Belt and Road” Initiative," Sustainability, MDPI, vol. 10(11), pages 1-22, November.
    5. Thang V. Nguyen & Ngoc T. B. Le & Nick J. Freeman, 2006. "Trust and Uncertainty: A Study of Bank Lending to Private SMEs in Vietnam," Asia Pacific Business Review, Taylor & Francis Journals, vol. 12(4), pages 547-568, October.
    6. Mia Hsiao-Wen Ho & Pervez N. Ghauri & Jorma A. Larimo, 2018. "Institutional distance and knowledge acquisition in international buyer-supplier relationships: The moderating role of trust," Asia Pacific Journal of Management, Springer, vol. 35(2), pages 427-447, June.
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    10. Nguyen, Thang V. & Rose, Jerman, 2009. "Building trust--Evidence from Vietnamese entrepreneurs," Journal of Business Venturing, Elsevier, vol. 24(2), pages 165-182, March.
    11. Burton, Nicholas & Vu, Mai Chi & Cruz, Allan Discua, 2022. "Our social legacy will go on: Understanding outcomes of family SME succession through engaged Buddhism," Journal of Business Research, Elsevier, vol. 143(C), pages 105-118.
    12. Amankwah-Amoah, Joseph, 2014. "Old habits die hard: A tale of two failed companies and unwanted inheritance," Journal of Business Research, Elsevier, vol. 67(9), pages 1894-1903.
    13. Ngoc T.B. Le & Thang V. Nguyen, 2009. "The Impact of Networking on Bank Financing: The Case of Small and Medium–Sized Enterprises in Vietnam," Entrepreneurship Theory and Practice, , vol. 33(4), pages 867-887, July.

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