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The Effects of Context on Trust in Firm-Stakeholder Relationships: The Institutional Environment, Trust Creation, and Firm Performance

Published online by Cambridge University Press:  23 January 2015

Andrew C. Wicks  and
Shawn L. Berman
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Abstract:

Recent work on the subject speaks to the importance trust has for firm performance (e.g., Hagen and Choe, 1999; Hill, 1995). Yet little work has been done to show how context affects the ability of firms to create trust in relationships with key stakeholders. This paper looks at how the institutional environment may affect the performance of different strategies for managing firm-stakeholder relationships, and in turn, how this affects firm performance. The authors put forward propositions that build on these theoretical insights and offer prospects for future empirical work.

Type
Articles
Information
Business Ethics Quarterly , Volume 14 , Issue 1 , January 2004 , pp. 141 - 160
Copyright
Copyright © Society for Business Ethics 2004

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