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A Spiral Model of Trust Evolution

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Proceedings of the Twelfth International Conference on Management Science and Engineering Management (ICMSEM 2018)

Part of the book series: Lecture Notes on Multidisciplinary Industrial Engineering ((LNMUINEN))

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Abstract

This paper studies the dynamics and evolution of trust as well as its intrinsic motivation and mechanisms and contributes to small business lending and trust literature by looking at a quantitative and endogenous perspective of trust evolution. A theoretical model of motivations and evolution of trust based on the notion of trust response and trust spiral is proposed in this paper. Three motivations driving the evolution of trust are identified, i.e. self-interest, reciprocity and altruism. Then this paper specifically focuses on trust within the lending relationship between bank and small business and run numerical simulations to further illustrate the evolution of involved mutual trust over time. Finally, implications for the motivation, development and evolution of trust within small business lending relationship and for the future research are proposed.

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Acknowledgements

This research was supported by National Natural Science Foundation of China (No. 71703127).

Author information

Authors and Affiliations

  1. School of Finance, Southwestern University of Finance and Economics, Chengdu, People’s Republic of China

    Ying Tang & Zhiyong Li

  2. School of Management, Cranfield University, Bedford MK43 0AL, UK

    Andrea Moro

  3. School of Management and IQSCS, University of Leicester, Leicester, UK

    Sandro Sozzo

Authors
  1. Ying Tang
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  2. Andrea Moro
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  3. Sandro Sozzo
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  4. Zhiyong Li
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Corresponding author

Correspondence to Ying Tang .

Editor information

Editors and Affiliations

  1. Sichuan University, Chengdu, China

    Jiuping Xu

  2. Monash University, Department of Management, Melbourne, VIC, Australia

    Fang Lee Cooke

  3. Fuzzy Logic Systems Institute, Tokyo University of Science, Tokyo, Japan

    Mitsuo Gen

  4. Department of Mathematics and Statistics, McMaster University, Hamilton, ON, Canada

    Syed Ejaz Ahmed

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Tang, Y., Moro, A., Sozzo, S., Li, Z. (2019). A Spiral Model of Trust Evolution. In: Xu, J., Cooke, F., Gen, M., Ahmed, S. (eds) Proceedings of the Twelfth International Conference on Management Science and Engineering Management. ICMSEM 2018. Lecture Notes on Multidisciplinary Industrial Engineering. Springer, Cham. https://doi.org/10.1007/978-3-319-93351-1_41

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