The Importance of Trust for Partnership and Collaboration in Volatile Economic Conditions

Volatile economic conditions are painful for most firms. Firms struggle to survive when market demand is sluggish, uncertainties are high, and credit conditions are tight. Therefore, maintaining and strengthening partnerships, retaining existing customers or finding new ones through innovation, and...

Full description

Saved in:
Bibliographic Details
Published inGlobal Business Strategies in Crisis pp. 139 - 150
Main Authors Gur, Nurullah, Alayoğlu, Nihat
Format Book Chapter
LanguageEnglish
Published Switzerland Springer International Publishing AG 01.01.2017
Springer International Publishing
SeriesContributions to Management Science
Subjects
Business Partner
Business strategy
Firm Performance
Global Financial Crisis
Minority Shareholder
Organizational theory & behaviour
Personnel & human resources management
Trade Credit
Online AccessGet full text

Cover

More Information
Summary:Volatile economic conditions are painful for most firms. Firms struggle to survive when market demand is sluggish, uncertainties are high, and credit conditions are tight. Therefore, maintaining and strengthening partnerships, retaining existing customers or finding new ones through innovation, and finding external finance are extremely vital to keep firms alive during volatile economic conditions. In this chapter we argue that trust plays a key role in protecting strong relationships with partners, customers, suppliers, and other actors or when developing new relationships. Trust might help to protect partnerships and establish collaborative relationships by mitigating asymmetric information and free-rider problems, allowing for more open and honest information sharing and restraining opportunistic behaviour.
ISBN:9783319445908
3319445901
ISSN:1431-1941
2197-716X
DOI:10.1007/978-3-319-44591-5_10