Munich Personal RePEc Archive

It’s all about Trust and Loyalty: Partner Selection Mechanisms in Tourism Networks

Pesämaa, Ossi and Örtqvist, Daniel and Hair Jr, Josph F (2007): It’s all about Trust and Loyalty: Partner Selection Mechanisms in Tourism Networks. Forthcoming in: World Journal of Tourism Small Business Management , Vol. 1, No. 2 : pp. 12-18.

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Does expected partner or task related criteria affect how trust and loyalty is developed between tourism firms? This paper poses a model, which is developed on the assumption that well defined partner and task related partner expectations and experienced trust, should build loyalty between tourism firms. The model provides a more precise assessment for scholars, which believes that trust is related to the risk that is associated with personal relationships between two or more firms, and that risk depends on expectations that are derived from personal relationships. The model also integrates the role of experienced trust in transforming different partner selection criteria into loyalty. The contribution of the model is that it provides insights into cooperative relationships by examining the role of trust between small tourism firms when cooperation is established. Data from a sample of 96 tourism firms in the Northern U.S. is used to test the model. The findings provide implications for tourism scholars and policy-makers who are interested in developing managerial strategies that are based on personal relationships.

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