Advertisement

Conclusion and Implications of Trust, Institutions and Managing Entrepreneurial Relationships in Africa

  • Isaac Oduro Amoako
Chapter
Part of the Palgrave Studies of Entrepreneurship in Africa book series (PSEA)

Abstract

This chapter sums up the discussions in this book by recapping the nature and role of state, market, and cultural institutions in trust development and management in entrepreneurial networks and relationships in Africa. It shows how entrepreneurs owning and managing small and medium-sized enterprises in Africa draw on logics of institutions, and industry to develop trust, perceive trust violation, and repair trust in entrepreneurial relationships in the absence of strong state and market institutions. This chapter highlights the implications for theory, practice, and policy and ends with suggestions for future research.

Keywords

Africa Institutions Trust development Trust violations Trust repairs 

References

  1. Accenture. 2010. Africa: The new frontier for growth. Online access on 13 Feb 2012. http://nstore.accenture.com/pdf/Accenture_Africa_The_New_Frontier_for_Growth.pdf.
  2. Amankwah-Amoah, J., and Y. Debrah. 2017. Toward a construct of liability of origin. Industrial and Corporate Change 26 (2): 211–231.Google Scholar
  3. Amoako, I.O. 2012. Trust in exporting relationships: The case of SMEs in Ghana, Published PhD thesis. Center for Economic and Enterprise Development Research (CEEDR) Middlesex University, London. http://eprints.mdx.ac.uk/12419/.
  4. Amoako I.O., and Lyon F. 2011. Interorganisational trust violations and repairs in a weak legal environment: Evidence from Ghanaian Exporting SMEs. Paper presented at the European Group of Organisational Studies (EGOS) Conference, Gothenburg, Gothenburg University, July 7–9.Google Scholar
  5. Amoako, I.O., and F. Lyon. 2014. We don’t deal with courts: Cooperation and alternative institutions shaping exporting relationships of SMEs in Ghana. International Small Business Journal 32 (2): 117–139.CrossRefGoogle Scholar
  6. Bachmann, R. 2001. Trust, power and control in trans-organizational relations. Organization Studies 22 (2): 337–365.CrossRefGoogle Scholar
  7. Bachmann, R., and A. Inkpen. 2011. Understanding institutional-based trust building processes in inter-organisational relationships. Organization Studies 32 (2): 281–300.CrossRefGoogle Scholar
  8. Bachmann, R., N. Gillespie, and R. Priem. 2015. Repairing trust in organizations and institutions: Toward a conceptual framework. Organization Studies 36 (9): 1123–1142.CrossRefGoogle Scholar
  9. BBC News. 2018. May in Africa; UK Prime Minister’s mission to woo continent after Brexit. 28th August 2018. http://www.bbc.co.uk/news/world-africa-45298656
  10. Bruton, G.D., D. Ahlstrom, and H.-L. Li. 2010. Institutional theory and entrepreneurship: Where are we now and where do we need to move in the future? Entrepreneurship Theory and Practice 34 (3): 421–440.CrossRefGoogle Scholar
  11. Chang, C.-C., S.-N. Yao, S.-A. Chen, J.-T. King, and C. Liang. 2016. Imagining garage startups: Interactive effects of imaginative capabilities on technopreneurship intention. Creativity Research Journal 28 (3): 289–297.CrossRefGoogle Scholar
  12. Chell, E. 2000. Towards researching the ‘opportunistic entrepreneur’: A social constructionist approach and research agenda. European Journal of Work and Organizational Psychology 9 (1): 63–80.CrossRefGoogle Scholar
  13. Chell, E. 2007. Social enterprise and entrepreneurship: Towards a convergent theory of entrepreneurial process. International Small Business Journal 25 (1): 5–26.CrossRefGoogle Scholar
  14. Delloitte. 2014. The Delloitte consumer review Africa: A 21st century view, London.Google Scholar
  15. Dietz, G., N. Gillespie, and G.T. Chao. 2010. Unravelling the complexities of trust and culture. In Organizational trust: A cultural perspective, ed. M.N.K. Saunders, D. Skinner, G. Dietz, N. Gillespie, and R.J. Lewicki. Cambridge: Cambridge University Press.Google Scholar
  16. Dirks, K.T., R.J. Lewicki, and A. Zaheer. 2009. Repairing relationships within and between organizations: Building a conceptual foundation. Academy of Management Review 34: 68–84.CrossRefGoogle Scholar
  17. Drakopoulou Dodd, S., and A.R. Anderson. 2007. Mumpsimus and the mything of the individualistic entrepreneur. International Small Business Journal 25 (4): 341–360.CrossRefGoogle Scholar
  18. Ellis, P. 2000. Social ties and foreign market entry. Journal of International Business Studies 31 (3): 443–470.CrossRefGoogle Scholar
  19. Estrin, S., and M. Pervezer. 2011. The role of informal institutions in corporate governance: Brazil, Russia, India, and China compared. Asia Pacific Journal of Management 28 (1): 41–67.CrossRefGoogle Scholar
  20. Friedland, R., and R.R. Alford. 1991. Bringing society back in: Symbols, practices, and institutional contradictions. In The new institutionalism in organizational analysis, ed. W.W. Powell and P.J. DiMaggio, 17th ed., 232–263. Chicago: University of Chicago Press.Google Scholar
  21. Gambetta, D. 1988. Trust: Making and breaking cooperative relations. Oxford/New York: Basil Blackwell.Google Scholar
  22. Gartner, W.B. 1988. Who is an entrepreneur? Is the wrong question. American Journal of Small Business 12 (4): 11–32.CrossRefGoogle Scholar
  23. George, G., J.N.O. Khayesi, and M.R.T. Haas. 2016. Bringing Africa in: Promising directions for management research. Academy of Management Journal 59 (2): 377–393.CrossRefGoogle Scholar
  24. Gillespie, N., and G. Dietz. 2009. Trust repair after an organization level failure. Academy of Management Review 34 (1): 127–145.CrossRefGoogle Scholar
  25. Granovetter, M.S. 1985. Economic action and social structure: The problem of embeddedness. American Journal of Sociology 91 (3): 481–510.CrossRefGoogle Scholar
  26. Jackson, T., K. Amaeshi, and S. Yavuz. 2008. Untangling African indigenous management: Multiple influences on the success of SMEs in Kenya. Journal of World Business 43 (3): 400–416.CrossRefGoogle Scholar
  27. Kim, P.H., D.L. Ferrin, C.D. Cooper, and K.T. Dirks. 2004. Removing the shadow of suspicion: The effects of apology versus denial for repairing competence-based versus integrity-based trust violations. Journal of Applied Psychology 89 (1): 100–118.CrossRefGoogle Scholar
  28. Lewicki, R.J., and B.B. Bunker. 1996. Developing and maintaining trust in work relationships. In Trust in organizations: Frontiers of theory and research, ed. R. Kramer and T.R. Tyler. Thousand Oaks: Sage.Google Scholar
  29. Li, P.P. 2016. The holistic and contextual natures of trust: Past, present and future research. Journal of Trust Research 6 (1): 1–6.CrossRefGoogle Scholar
  30. Lyon, F., and G. Porter. 2009. Market institutions, trust and norms: Exploring moral economies in Nigerian food systems. Cambridge Journal of Economics 33 (5): 903–920.CrossRefGoogle Scholar
  31. Mayer, R., J. Davis, and F. Schoorman. 1995. An integrative model of organisational trust. Academy of Management Review 20: 709–734.CrossRefGoogle Scholar
  32. Möllering, G. 2006. Trust: Reason, routine, reflexivity. Amsterdam: Elsevier.Google Scholar
  33. North, D.C. 1990. Institutions, institutional change and economic performance. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  34. Peng, M.W., D.Y.L. Wang, and J. Yi. 2008. An institution-based view of international business strategy: A focus on emerging economies. Journal of International Business Studies 39: 920–936.CrossRefGoogle Scholar
  35. Ren, H., and B. Gray. 2009. Repairing relationship conflict: How violation types and culture influence the effectiveness of restoration rituals. Academy of Management Review 34 (1): 105–126.CrossRefGoogle Scholar
  36. Saunders, M.N.K., D. Skinner, G. Dietz, N. Gillespie, and R.J. Lewicki. 2010. Organizational trust: A cultural perspective. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  37. Scott, W.R. 2005. Institutional theory: Contributing to a theoretical research programme. In Great minds in management: The process theory development, ed. M.A. Hitt and K.G. Smith. Oxford: Oxford University Press.Google Scholar
  38. Schumpeter, J. 1942. Capitalism, socialism and democracy. London: Allen & Unwin.Google Scholar
  39. Shane, S., and S. Venkataraman. 2000. The promise of entrepreneurship as a field of research. Academy of Management Review 25 (1): 217–226.Google Scholar
  40. Thornton, P. 2004. Markets from culture: Institutional logics and organisational decision in higher educational publishing. Stanford: Stanford University Press.Google Scholar
  41. Thornton, P.H., D. Ribeiroi-Soriano, and D. Urbano. 2011. Socio-cultural logics and entrepreneurial activity: An overview. International Small Business Journal 29 (2): 105–118.CrossRefGoogle Scholar
  42. Thornton, P., W. Ocasio, and M. Loundbury. 2012. The institutional logics perspective: A new approach to culture, structure and process. Oxford: Oxford University Press.Google Scholar
  43. Welter, F. 2002. Trust, Institutions and Entrepreneurial Behaviour. In Entrepreneurial Strategies in East and West European Environments. Concepts and Considerations, ed. H.H. Hohmann and F. Welter, 37–42. Bremenr: Forschungsstelle Osteuropa.Google Scholar
  44. Welter, F., and D. Smallbone. 2011. Institutional perspectives on entrepreneurial behaviour in challenging environments. Journal of Small Business Management 49 (1): 395–406.CrossRefGoogle Scholar
  45. Williamson, O. 1993. Calculativeness, trust and economic organization. Journal of Law and Economics 36: 453–486.CrossRefGoogle Scholar
  46. World Bank. 2018. Doing Business 2018. Washington, DC: World Bank.Google Scholar
  47. Wu, W., M. Firth, and O.M. Rui. 2014. Trust and the provision of trade credit. Journal of Banking & Finance 39: 146–159.CrossRefGoogle Scholar
  48. Yin, R.K. 2009. Case study research: Design and methods. Beverly Hills: Sage.Google Scholar
  49. Zucker, L.G. 1986. Production of trust. Institutional sources of economic structure, 1840–1920. Research in Organisation Behaviour 8: 53–111.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Isaac Oduro Amoako
    • 1
  1. 1.Liverpool Business SchoolLiverpool John Moores UniversityLiverpoolUK

Personalised recommendations