Trust, contracting, and adaptation in agri-food hybrid structure

Martino, Gaetano (2010): Trust, contracting, and adaptation in agri-food hybrid structure. Published in: International Journal on Food System Dynamics , Vol. 1, No. 4 (2010): pp. 305-317.

Abstract

The paper considers the relationship between trust and governance structure from a Transaction Cost Economics perspective. The role of trust in the coordinating decisions is variously conceptualized according to the theoretical view adopted by the scholars. The present study adopt the three‐level schema introduced by Williamson (1996) and suggest that determinants of trust may operate both at institutional and governance structure level. The analytical framework depicted maintains that trust may determine a reduction of ex post transaction cost in the adaptation of hybrid structure. As a consequence trust appears to be able to extend the range of existence of the hybrids. The empirical part of the study is dedicated to a case study which illustrates the emerging of conditional trust (Fritz et al., 2008) and the role of trust in the adaptation process.

• Item Type: MPRA Paper
• English Title: Trust, Contracting, and Adaptation in Agri�]Food Hybrid Structures
• Language: English
• Keywords: hybrid, conditional trust, adaptation, contractual relationship
• Subjects: D - Microeconomics > D2 - Production and Organizations > D23 - Organizational Behavior ; Transaction Costs ; Property Rights; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q13 - Agricultural Markets and Marketing ; Cooperatives ; Agribusiness; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L22 - Firm Organization and Market Structure

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