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Inter-firm trust in buyer-supplier relations : are knowledge spillovers and geographical proximity relevant?

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Bönte, Werner

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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 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.
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
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)