Skip to main content

Relations Between Trust and Networks

  • Chapter
Management of Network Organizations
  • 998 Accesses

Abstract

Given the increasing importance of networks in the organization of business activities, much attention is given to trust which is inherently linked to non-hierarchical forms of organization. Though trust has been relatively intensively studied, the prior research is rather fragmented. This chapter aims to integrate the theories of trust in networks by combining different streams of research looking separately at the consequences of trust for a network and the effects of networks on trust. A model combining these two perspectives is offered, suggesting that a high level of either trust or density can produce a virtuous cycle of exploitation.

Anna Sankowska was deceased at the time of publication.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Adler, P. S. (2001). Market, hierarchy, and trust: The knowledge economy and the future of capitalism. Organization Science, 12(2), 215–234. doi:10.1287/orsc.12.2.215.10117.

    Article  Google Scholar 

  • Ahuja, G. (2000). Collaboration networks, structural holes and innovation: A longitudinal study. Administrative Science Quarterly, 45(3), 425–455. doi:10.2307/2667105.

    Article  Google Scholar 

  • Anderson, E., & Weitz, B. (1989). Determinant of continuity in conventional industrial channel dyads. Marketing Science, 8(4), 310–323. doi:10.1287/mksc.8.4.310.

    Article  Google Scholar 

  • Argyris, C. (1973). On organization of the future. Beverly Hills: Sage.

    Google Scholar 

  • Arrow, K. J. (1974). The limits of organization. New York: W.W. Norton & Company.

    Google Scholar 

  • Brissette, I., Cohen, S., & Seeman, T. E. (2000). Measuring social integration and social networks. In S. Cohen, L. G. Underwood, & B. H. Gottlieb (Eds.), Social support measurement and interventions. New York: Oxford University Press.

    Google Scholar 

  • Burt, R. S. (1992). Structural holes: The social structure of competition. Boston: Harvard University Press.

    Google Scholar 

  • Buskens, V. (2002). Social networks and trust. Boston: Kluwer.

    Google Scholar 

  • Chow, I. H.-S. (2008). How trust reduces transaction costs and enhances performance in China’s business. SAM Advanced Management Journal, 73(2), 25–34.

    Google Scholar 

  • Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128–152.

    Article  Google Scholar 

  • Coleman, J. S. (1988). Social capital in the creation of human capital. American Journal of Sociology, 94, 95–120.

    Article  Google Scholar 

  • Coleman, J.S. (1990). Foundations of social theory. Boston: Harvard University Press.

    Google Scholar 

  • Cygler, J., & Sroka, W. (2014). Structural pathologies in inter-organizational networks and their consequences. Procedia: Social and Behavioral Sciences, 110(24), 52–63. doi:10.1016/j.sbspro.2013.12.847.

    Google Scholar 

  • Davis, J. H., Schoorman, F., Mayer, R. C., & Tan, T. H. (2000). The trusted general manager and business unit performance. Empirical evidence of a competitive advantage. Strategic Management Journal, 21(5), 563–576. doi:10.1002/(SICI)1097-0266(200005)21:5<563::AID-SMJ99>3.0.CO;2-0.

    Article  Google Scholar 

  • Dirks, D. T., & Ferrin, D. L. (2001). The role of trust in organizational settings. Organization Science, 12(4), 450–467. doi:10.1287/orsc.12.4.450.10640.

    Article  Google Scholar 

  • Doney, P. M., & Cannon, J. P. (1997). An examination of the nature of trust in buyer-seller relationships. Journal of Marketing, 61(2), 35–51. doi:10.4236/me.2013.49A003.

    Article  Google Scholar 

  • Gargiulo, C., & Benassi, M. (2000). Trapped in your own net? Network cohesion, structural holes, and adaptation of social capital. Organization Science, 11(2), 183–196. doi:10.1287/orsc.11.2.183.12514.

    Article  Google Scholar 

  • Gerlach, M. L. (1992). Alliance capitalism. The social organization of Japanese business. Berkley: University of California.

    Google Scholar 

  • Gulati, R. (1995). Social structure and alliance formation patterns: A longitudinal study. Administrative Science Quarterly, 40(4), 619–652.

    Article  Google Scholar 

  • Ha, B.-C., Park, Y.-K., & Cho, S. (2011). Supplier’s affective trust and trust in competency in buyers. Its effect on collaboration and logistics efficiency. International Journal of Operations and Production Management, 31(1), 56–77.

    Article  Google Scholar 

  • Handfield, R. B., & Bechtel, C. (2002). The role of trust and relationship structure in improving supply chain responsiveness. Industrial Marketing Management, 31(4), 367–382. doi:10.1016/S0019-8501(01)00169-9.

    Article  Google Scholar 

  • Levin, D., & Cross, R. (2004). The strength of weak ties you can trust: the mediating role of trust in effective knowledge transfer. Management Science, 50(11), 1477–1490. doi:10.1287/mnsc.1030.0136.

    Article  Google Scholar 

  • Lewicki, R. J., & Bunker, B. B. (1995). Trust in relationships: A model of trust development and decline. In B. B. Bunker & J. Z. Rubin (Eds.), Conflict, cooperation and justice. San Francisco: Jossey-Bass.

    Google Scholar 

  • Likert, R. (1967). The human organization: Its management and value. New York: McGraw-Hill.

    Google Scholar 

  • Lin, N. (1999). Building a network theory of social capital. Connections, 22(1), 28–51.

    Google Scholar 

  • Lin, N. (2001). Social capital. A theory of social structure and action. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Marsden, P. V. (1983). Restricted access in networks and models of power. American Journal of Sociology, 88(4), 686–717.

    Article  Google Scholar 

  • Mayer, R. C., Davis, J. H., & Schoorman, F. D. (1995). An integrative model of organizational trust. Academy of Management Review, 20(3), 709–734. doi:10.5465/AMR.1995.9508080335.

    Google Scholar 

  • McGregor, D. (1960). The human side of enterprise. New York: McGraw-Hill.

    Google Scholar 

  • Mitchell, J. C. (1969). The concept and use of social networks. In J. C. Mitchel (Ed.), Social networks in urban situations. Manchester: Manchester University Press.

    Google Scholar 

  • Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3), 420–443.

    Article  Google Scholar 

  • Nakatani, I. (1984). The economic role of financial corporate groupings. In M. Aoki (Ed.), The economic analysis of the Japanese firm. Amsterdam: North-Holland.

    Google Scholar 

  • Pfeffer, J., & Salancik, G. R. (1978). The external control of organizations: A resource dependence perspective. New York: Random House.

    Google Scholar 

  • Phelps, C. C. (2010). A longitudinal study of the influence of alliance network structure and composition on firm exploratory innovation. Academy of Management Journal, 53(4), 890–913. doi:10.5465/AMJ.2010.52814627.

    Article  Google Scholar 

  • Podolny, J. M., & Baron, J. N. (1997). Resources and relationships: Social networks and mobility in the workplace. American Sociology Review, 62(5), 673–693. doi:10.2307/2657354.

    Article  Google Scholar 

  • Prahalad, C. K., & Hamel, G. (1990). The core competence of the cooperation. Harvard Business Review, 68(3), 79–91.

    Google Scholar 

  • Reagans, R., & Zuckerman, E. W. (2001). Networks, diversity, and productivity: The social capital of corporate R&D teams. Organization Science, 12(4), 502–517. doi:10.1287/orsc.12.4.502.10637.

    Article  Google Scholar 

  • Rowley, T., Behrens, D., & Krackhardt, D. (2000). Redundant governance structures: An analysis of structural and rational embeddedness in the steel and semiconductor industries. Strategic Management Journal, 21(3), 369–386. doi:10.1002/(SICI)1097-0266(200003)21:3<369::AID-SMJ93>3.0.CO;2-M.

    Article  Google Scholar 

  • Rus, A. (2005). Trust and performance: institutional, interpersonal and network trust. In K. Bijlsma-Frankema & R. K. Woolthuis (Eds.), Trust under pressure. Cheltenham: Edward Elgar.

    Google Scholar 

  • Sankowska, A. (2013a). Further understanding of links between interorganizational trust and enterprise innovativeness – from a perspective of an enterprise. International Journal of Innovation and Learning, 13(3), 308–321. doi:10.1504/IJIL.2013.052899.

    Article  Google Scholar 

  • Sankowska, A. (2013b). Relationships between organizational trust, knowledge transfer, knowledge creation, and firm’s innovativeness. Learning Organization, 20(1), 85–100.

    Article  Google Scholar 

  • Shipilov, A. V. (2009). Firm scope experience, historic multimarket contact with partners, centrality, and the relationship between structural holes and performance. Organization Science, 20(1), 85–106.

    Article  Google Scholar 

  • Shipilov, A. V., Grevem, H. R., & Rowley, T. J. (2010). When do interlocks matter? Institutional logics and the diffusion of multiple corporate governance practices. Academy of Management Journal, 53(4), 846–64. doi:10.5465/AMJ.2010.52814614.

    Article  Google Scholar 

  • Shockley-Zalabak, P., Ellis, K., & Winograd, G. (2000). Organization trust: What it means, why it matters. Organizational Development Journal, 18(4), 35–48.

    Google Scholar 

  • Shockley-Zalabak, P., Morreale, S. P., & Hackman, M. Z. (2010). Building the high-trust organization. Strategies for supporting key dimensions of trust. San Francisco: Jossey-Bass.

    Google Scholar 

  • Song, L., Son, J., & Lin, N. (2011). Social support. In J. Scott & P. J. Carrington (Eds.), The sage handbook of social network analysis. Los Angeles: Sage.

    Google Scholar 

  • Sroka, W., & Hitmar, S. (2013). Management of alliance networks: Formation, functionality and post operational strategies. Heidelberg: Springer. doi:10.1007/978-3-642-34246-2.

    Book  Google Scholar 

  • Tsai, W., & Ghoshal, S. (1998). Social capital and value creation: the role of intrafirm networks. Academy of Management Journal, 41(4), 464–476. doi:10.2307/257085.

    Article  Google Scholar 

  • Uslaner, E. M. (2002). The moral foundations of trust. Cambridge: Cambridge University Press.

    Google Scholar 

  • Uzzi, B. (1997). Social structure and competition in interfirm networks: The paradox of embeddedness. Administrative Science Quarterly, 42(1), 35–67.

    Article  Google Scholar 

  • Williamson, O. (1985). The economic institutions of capitalism. New York: Free Press.

    Google Scholar 

  • Wu, M.-Y., Weng, Y.-C., & Huang, I.-C. (2012). A study of supply chain partnerships based on the commitment-trust theory. Asia Pacific Journal of Marketing and Logistics, 24(4), 690–707. doi:10.1108/13555851211259098.

    Article  Google Scholar 

Download references

Acknowledgement

The research was supported by a National Science Centre grant based on the decision no. DEC-2011/03/B/HS3/01362.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Anna Sankowska .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2015 Springer International Publishing Switzerland

About this chapter

Cite this chapter

Sankowska, A. (2015). Relations Between Trust and Networks. In: Sroka, W., Hittmár, Š. (eds) Management of Network Organizations. Springer, Cham. https://doi.org/10.1007/978-3-319-17347-4_4

Download citation

Publish with us

Policies and ethics