Trust types, distrust, and performance outcomes in small business relationships: the pharmacy-drug warehouse case

Sengun A. E., WASTİ PAMUKSUZ S. N.

SERVICE INDUSTRIES JOURNAL, vol.31, no.2, pp.287-309, 2011 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 31 Issue: 2
  • Publication Date: 2011
  • Doi Number: 10.1080/02642060902759137
  • Journal Name: SERVICE INDUSTRIES JOURNAL
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.287-309
  • Keywords: trust, small business, conflict resolution, goodwill, transaction costs, performance, RELATIONSHIP QUALITY, INTERPERSONAL-TRUST, COOPERATION, DETERMINANTS, GOVERNANCE, RISK, FRAMEWORK, EXCHANGE, MODEL, JAPAN
  • Middle East Technical University Affiliated: Yes

Abstract

This study attempts to investigate the linkage among trust types, distrust, and relationship performance outcomes in the context of long-term supply agreement-type alliances between small business dyads. The results suggest a significant positive relationship among goodwill trust and risk-taking tendency, cooperation, satisfaction, and conflict resolution and a negative relationship between goodwill trust and transaction costs. Competence trust is found to have a positive relationship with cooperation, conflict resolution, and satisfaction and a negative relationship with transaction costs. However, no significant relationship is found between competence trust and risk-taking tendency. Distrust, on the other hand, is found to have a negative relationship with cooperation, satisfaction, and conflict resolution and a significant positive relationship with transaction costs with no effect on risk-taking tendency.