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Antecedents of trust in industrial districts: an empirical analysis of inter-firm relations in a Turkish industrial district

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  • Beyza Oba
  • Fatih Semerciöz

Abstract

Structural features and institutional settings of industrial districts, rather than contracts as a co-coordinating mechanism, promote trust in exchanges between firms in industrial districts. Based on this assumption, the paper explores the antecedents of trust in a Turkish industrial district at three levels: institutional environment; institutional arrangements; and inter-firm exchanges. In relation to institutional environment, dominant institutions of the Turkish economy -- mainly state and finance -- and their policies that undermine the role of SMEs in economic development are studied. In this context a third institution, the ‘district association’ that has a vital role in promoting trust-based governance has been analysed. At the second level, formal and informal institutional arrangements that govern the web of exchanges between firms are surveyed. The third level of analysis is directed at entrepreneurs and their attitudes towards family, friendship, expertise and reputation are studied. The research site is the Merter textile district in Istanbul. Data for second and third levels of analysis has been collected through structured interviews and is analysed quantitatively. For institutions and institutional environment, data has been collected mainly by in-depth interviews and is supported by secondary data. Research findings show that informal institutional arrangements are more important than formal arrangements and reputation and expertise of the other firm is more important than family-friendship connections as antecedents of trust.

Suggested Citation

  • Beyza Oba & Fatih Semerciöz, 2005. "Antecedents of trust in industrial districts: an empirical analysis of inter-firm relations in a Turkish industrial district," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 17(3), pages 163-182, May.
    • Handle: RePEc:taf:entreg:v:17:y:2005:i:3:p:163-182
    DOI: 10.1080/08985620500102964
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    Cited by:

    1. María José Ruiz-Ortega & Gloria Parra-Requena & Pedro Manuel García-Villaverde, 2016. "Do Territorial Agglomerations Still Provide Competitive Advantages? A Study of Social Capital, Innovation, and Knowledge," International Regional Science Review, , vol. 39(3), pages 259-290, July.
    2. Lucia Naldi & Carmelo Cennamo & Guido Corbetta & Luis Gomez–Mejia, 2013. "Preserving Socioemotional Wealth in Family Firms: Asset or Liability? The Moderating Role of Business Context," Entrepreneurship Theory and Practice, , vol. 37(6), pages 1341-1360, November.
    3. Nigar Cagla Mutlucan, 2018. "Competitive Advantage and Clusters: What Can We Learn from Nine Turkish Clusters?," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 32(2), pages 47-76.
    4. Massa, Lorenzo & Ardito, Lorenzo & Messeni Petruzzelli, Antonio, 2022. "Brokerage dynamics in technology transfer networks: A multi-case study," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    5. Elaine Aparecida Regiani Campos & Luis Mauricio Resende & Joseane Pontes, 2019. "Barriers, external aspects and trust factors in horizontal networks of companies: a theoretical proposal for the construction of a model for evaluation of trust," Journal of Intelligent Manufacturing, Springer, vol. 30(4), pages 1547-1562, April.
    6. Pulles, Niels J. & Schiele, Holger, 2013. "Social Capital Determinants of Preferential Resource Allocation in Regional Clusters," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 24(2), pages 96-113.
    7. Jiang, Fuxiu & Cai, Xinni & Nofsinger, John R. & Zheng, Xiaojia, 2020. "Can reputation concern restrain bad news hoarding in family firms?," Journal of Banking & Finance, Elsevier, vol. 114(C).

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