Objectives and Structure of the Argument
Many economic transactions only take place because people trust each other. The cooperation which is generated through trust relationships between individuals creates interdependence. Investments will only pay off, if one or more agents stick to their promises. Trust is a social mechanism that has been approached by many economists, sociologists and organizational theorists.16 Academics and researchers have pointed to the importance of interpersonal trust in promoting consensual relationships and facilitating cooperation between individuals within organizations.
KeywordsCorporate Governance Business Organization Trust Relationship Trust Level Environmental Uncertainty
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