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Trust Environments And Entrepreneurial Behavior – Exploratory Evidence From Estonia, Germany And Russia

Author

Listed:
  • FRIEDERIKE WELTER

    (Rhine-Westphalia Institute for Economic Research & University of Siegen, Germany;
    Jönköping International Business School, Jönköping, Sweden)

  • TEEMU KAUTONEN

    (University of Newcastle upon Tyne , United Kingdom)

  • ALEXANDER CHEPURENKO

    (The Russian Independent Institute of Social and Nationalities Problems (RIISNP), Russia)

  • ELENA MALIEVA

    (University of Bremen, Germany)

  • URVE VENESAAR

    (Technical University, Estonia)

Abstract

This paper explores the role of different trust environments in West and East Europe on the behavior of entrepreneurs. In a stable institutional environment (e.g., Germany, core regions in Russia) personal trust mainly plays a complementary role for entrepreneurial behavior, while in more fragile environments (e.g., peripheral regions in Russia) it can substitute for institutional deficiencies. The exploratory empirical data analyzed in this study comprise three countries (Estonia, Germany and Russia), and they stem from an international research project, which was supported by the Volkswagen Foundation. The empirical discussion focuses in particular on interfirm relations of small businesses as well as on the sources of assistance used by entrepreneurs in solving business problems. The preliminary results indicate that the forms of trust depend on the respective regional and sectoral environments, which draws attention to the difficulties of classifying whole countries as "high-trust" versus "low-trust". Limitations of the analysis refer to the cross-sectional nature of the survey data.

Suggested Citation

  • Friederike Welter & Teemu Kautonen & Alexander Chepurenko & Elena Malieva & Urve Venesaar, 2004. "Trust Environments And Entrepreneurial Behavior – Exploratory Evidence From Estonia, Germany And Russia," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 12(04), pages 327-349.
    • Handle: RePEc:wsi:jecxxx:v:12:y:2004:i:04:n:s0218495804000178
    DOI: 10.1142/S0218495804000178
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    Citations

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    Cited by:

    1. Sanjay Goel & Ranjan Karri, 2006. "Entrepreneurs, Effectual Logic, and Over–Trust," Entrepreneurship Theory and Practice, , vol. 30(4), pages 477-493, July.
    2. Chun Yang & Bart Bossink & Peter Peverelli, 2018. "The Value of Business–Government Ties for Manufacturing Firms’ Product Innovation during Institutional Transition in China," Sustainability, MDPI, vol. 11(1), pages 1-27, December.
    3. Daria Volchek & Ari Jantunen & Sami Saarenketo, 2013. "The institutional environment for international entrepreneurship in Russia: Reflections on growth decisions and performance in SMEs," Journal of International Entrepreneurship, Springer, vol. 11(4), pages 320-350, December.
    4. Shaker A. Zahra & R. Isil Yavuz & Deniz Ucbasaran, 2006. "How Much do you Trust Me? The Dark Side of Relational Trust in New Business Creation in Established Companies," Entrepreneurship Theory and Practice, , vol. 30(4), pages 541-559, July.
    5. Tingting He & Paul R. Jackson, 2015. "Empirical Study of Trust in Chinese Organizations: Joint Venture versus State-Owned Enterprise," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 23(02), pages 139-166, June.
    6. Friederike Welter, 2006. "Exploring Entrepreneurship and SME Development in a Post Soviet Context," TeliaSonera Institute Discussion papers 5, Baltic International Centre for Economic Policy Studies (BICEPS);Stockholm School of Economics in Riga (SSE Riga).
    7. Rodgers, Waymond & Al Shammakhi, Badriya N. & Jeaneth, Johansson & Wincent, Joakim & Adams, Kweku, 2020. "DIY Entrepreneurship: a decision-pathway framework for ethical thought structures," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    8. Bischoff, Thore Sören & Hipp, Ann & Runst, Petrik, 2023. "Firm innovation and generalized trust as a regional resource," Research Policy, Elsevier, vol. 52(8).
    9. Bischoff, Thore Sören & Hipp, Ann & Runst, Petrik, 2022. "Firm innovation and generalized trust as a regional resource," ifh Working Papers 32/2022, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    10. Sidorchuk, Roman, 2012. "The state and public support for small enterprise (SME) in Russia," Annals of marketing-mba, Department of Marketing, Marketing MBA (RSconsult), vol. 2, June.
    11. Shirokova Galina & Knatko Dmitri & Vega Gina, 2013. "To Be or Not to Be: When Should a Threshold Firm in an Emerging Market Move to Professional Management?," EERC Working Paper Series 13/01e, EERC Research Network, Russia and CIS.
    12. Alexander Chepurenko, 2017. "Entrepreneurial Activity in Post-Socialist Countries: Methodology and Research Limitations," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 11(3), pages 11-24.

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