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Trust types, distrust, and performance outcomes in small business relationships: the pharmacy--drug warehouse case

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  • Ayşe Elif Şengün
  • S. Nazlı Wasti

Abstract

This study attempts to investigate the linkage among trust types, distrust, and relationship performance outcomes in the context of long-term supply agreement-type alliances between small business dyads. The results suggest a significant positive relationship among goodwill trust and risk-taking tendency, cooperation, satisfaction, and conflict resolution and a negative relationship between goodwill trust and transaction costs. Competence trust is found to have a positive relationship with cooperation, conflict resolution, and satisfaction and a negative relationship with transaction costs. However, no significant relationship is found between competence trust and risk-taking tendency. Distrust, on the other hand, is found to have a negative relationship with cooperation, satisfaction, and conflict resolution and a significant positive relationship with transaction costs with no effect on risk-taking tendency.

Suggested Citation

  • Ayşe Elif Şengün & S. Nazlı Wasti, 2009. "Trust types, distrust, and performance outcomes in small business relationships: the pharmacy--drug warehouse case," The Service Industries Journal, Taylor & Francis Journals, vol. 31(2), pages 287-309, January.
    • Handle: RePEc:taf:servic:v:31:y:2009:i:2:p:287-309
    DOI: 10.1080/02642060902759137
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    References listed on IDEAS

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    1. Klein Woolthuis, R. & Nooteboom, B., 2002. "Trust and Formal Control in interorganizational Relationships," ERIM Report Series Research in Management ERS-2002-13-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
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