Trust Repairs in Entrepreneurial Relationships in an African Context

Abstract

The development of trust in entrepreneurial relationships in Africa may enhance long-term profitable relationships for growth of both local and international businesses, and yet trust is delicate and easily violated. Hence it is critically important for actors doing business and those planning to do business in Africa to understand the processes of trust repair in African contexts. This chapter draws on the literature and empirical data to show how entrepreneurs draw on indigenous African institutions and the logics of particularly the traditional African justice system embedded in family/kinship, trade associations, communities, and religious bodies to shape the processes of trust repair in entrepreneurial relationships. It also shows the importance for entrepreneurs to understand the logics of weak state and market institutions, cultural institutions, industry, and relationships that enable the repair of trust without entrepreneurs resorting to litigation and the courts which may be expensive, a waste of time and damage relationships and their reputation. This chapter fills a gap in the literature that has previously focused on developed economies.