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Inter-firm trust in buyer-supplier relations: are knowledge spillovers and geographical proximity relevant?
[journal article]
Abstract This paper empirically examines the impact of knowledge spillovers and geographical proximity on inter-firm trust in buyer–supplier relations. In particular, the effects of incoming knowledge spillovers from vertically related firms and firms’ appropriability problems are analyzed. The results sugge... view more
This paper empirically examines the impact of knowledge spillovers and geographical proximity on inter-firm trust in buyer–supplier relations. In particular, the effects of incoming knowledge spillovers from vertically related firms and firms’ appropriability problems are analyzed. The results suggest that there is a positive relationship between incoming knowledge spillovers from business partners and the level of inter-firm trust. Firms’ appropriability problems, however, lead to a decrease in inter-firm trust. Firms that cannot protect their technical knowledge have a greater perception of customer (supplier) opportunism. Furthermore, estimation results indicate that inter-firm trust between geographically close partners exceeds inter-firm trust between distant partners.... view less
Classification
Basic Research, General Concepts and History of Economics
Free Keywords
Trust; Opportunism; Buyer–supplier relations; Knowledge spillovers; Geographical proximity
Document language
English
Publication Year
2008
Page/Pages
p. 855-870
Journal
Journal of Economic Behavior & Organization, 67 (2008) 3-4
DOI
https://doi.org/10.1016/j.jebo.2006.12.004
Status
Postprint; peer reviewed
Licence
PEER Licence Agreement (applicable only to documents from PEER project)