Integrated approach to trust development in organizational networks

Abstract

The paper presents the integrated theoretical framework for the development of inter-firm trust in organizational networks (specifically, regional industrial clusters). It seeks to explain the dynamics of trust in different stages of network evolution, the evolving nature of inter-firm trust and challenges to inter-firm relations in different stages of network maturity. The paper analyses the diverse factors underlying the development of systemic trust in business clusters, especially the emerging clusters in low trust environment. Paper regards the development of inter-organizational trust as a multi-level phenomenon (i.e. integrating the individual, organizational and societal perspectives), and seeks to combine the different disciplinary perspectives on dynamics of trust. Despite the universal recognition of the importance of trust in inter-firm relations, it remains a highly contextual phenomenon, sensitive to industrial and cultural contexts. Research covered 109 network facilitators from 37 countries with international expertise in trust development in business clusters. The paper shows the observed variety of factors - personal, organization, social, professional, institutional and educational - in different regional and industrial contexts. The combination of structured theoretical framework and practical insights helps to envisage different strategic approaches towards development of inter-firm trust.