Martin Mathews

The creation of trust: the interplay of rationality, institutions and exchange

Relationships based on notions of trust represent a central aspect of the communitarian model of industrial districts. Examination of trust has generated a substantial literature; nevertheless, there have been relatively few studies that have empirically considered the sources of trust that operate in local ties and connections. The paper aims to redress this imbalance by investigating relationships in the Arve Valley industrial district near Geneva. It considers sources of trust by engaging the theoretical framework of Möllerings (Möllering, G. 2006a. Trust: Reason, Routine, Reflexivity. Oxford: Elsevier) model of trust which is predicated on the concepts of reason, routine and reflexivity. In conjunction with this, the field research uses in-depth semi-directive interviews with small-firm managers in the Arve industrial district. The papers findings contribute to trust and industrial district literature by examining the complex interplay between the three antecedents of reason, routine and reflexivity in the creation of local trust in the industrial district setting. In essence, the paper proposes that the availability of information about potential partners and the existence of strong interdependencies inform trust decisions based on evaluation and calculation more than local norms and institutions.

Gift giving, reciprocity and the creation of trust

ABSTRACT This paper examines the role that gift giving plays in supplier–buyer relations, specifically, the role of gift giving and the creation of inter-organisational trust. Repeated inter-organisational exchanges in a mature industrial district are analysed using Mauss’ theoretical framework of gift giving, receiving and counter giving. Actors in embedded network relationships frequently exchange gifts and favours as part of commercial exchanges. This gift giving is a fundamental part of the exchange relationship. Gift giving is found to be instrumental in creating and maintaining relationships, defining group and individual identity and resolving conflicts, thus contributing to the creation of trust between partners. Mauss’ theory of gift giving elaborates how this practise creates the conditions for reciprocity and induces trust. The originality of our findings lies in the fact that despite the dominant ideology of the purely altruistic gift, field research demonstrates that gifts do play a role in modern economic exchanges and that this ancient deeply rooted social custom should not be simply relegated to families, close friends and Christmas, but contributes to explaining the first step of trust and trust creation in repeated exchanges.

Managing local supplier networks: conflict or compromise?

ABSTRACT This paper examines conflict management in small firm networks. Informal conflict management strategies used in exchange relationships are identified and analysed. In-depth, semi-structured interviews with 22 small and medium-sized enterprise managers in an industrial district in the south-east of France are analysed. Results point to managers adopting accommodating behaviours in conflicts with clients and compromising and collaborative strategies with local partners. This research reveals the mobilization of local norms in the management of conflicts and also contributes to research concerning coopetition and the possibility that managers of small firms may both separate and integrate coopetition activities.