Empirical Investigations of Trust and Trust Building in Uncertain Circumstances
Edited by Katinka Bijlsma-Frankema and Rosalinde Klein Woolthuis
Chapter 8: Trust as a Market-based Resource: Economic Value, Antecedents and Consequences
8. Trust as a market-based resource: economic value, antecedents and consequences1 Bruno Busacca and Sandro Castaldo 1. INTRODUCTION Trust has become a relevant subject in management literature since the increasing complexity of technology, consumer behaviour and competition has shown the need for new theoretical approaches, that can take account of the critical importance of intangible resources in the generation of competitive advantages and economic value. The resource-based view (for example Penrose, 1959; Rumelt, 1984; Wernerfelt, 1984; Barney, 1986 and 1991; Itami, 1987; Dierickx and Cool, 1989; Grant, 199l and 1996; Vicari, 1991 and 1992; Amit and Schoemaker, 1993; Peteraf, 1993; Hunt and Morgan, 1995) has shown that these intangibles can be of a different nature. Although there is much debate between scholars about the best way of classifying intangible resources, these are principally of two related types: knowledge and trust. Knowledge refers to the cognitive schemes that a ﬁrm possesses internally and that are sufﬁciently stable to allow the whole business system to function. Trust refers to the cognitive models that relate to subjects outside the ﬁrm (for example customers, distributors, suppliers, and ﬁnancial institutions). Knowledge resources which are contained in the memory of the ﬁrm are ‘intellectual’ assets, while trust which is contained in the memories of outside entities, is based on the certainty of behavioural expectations that the ﬁrm is able to generate in other subjects (Vicari, 1991; Srivastava et al., 1998). Firms that are committed to the ‘improvement’ of knowledge and trust are best able to...
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