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| Author: | Klein Woolthuis, R. Hillebrand, B. Nooteboom, B. |
| Title: | Trust, contract and relationship development |
| Journal: | Organization Studies
2005 : JUN, VOL. 26:6, p. 813-840 |
| Index terms: | control interorganizational relations transaction costs trust |
| Language: | eng |
| Abstract: | This paper contributes to the debate on the relation between trust and control in the management of inter-organizational relations. More specifically, the focus is on the question of how trust and formal contract are related. Previous studies on the subject fail to answer 1) whether contract precedes trust or follows it, 2) how and why trust contract can substitute or complement each other and 3) how the various combinations of trust and contract affect a relationship's development and outcome. In search of answers, longitudinal case studies were conducted to reveal the relationship between trust, contract and relationship outcome in complex inter-company relationships. |
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