Main Data
Author: Marco Tulio Zanini
Title: Trust within Organizations of the New Economy A Cross-Industrial Study
Publisher: DUV Deutscher Universitäts-Verlag
ISBN/ISSN: 9783835054103
Edition: 1
Price: CHF 68.00
Publication date: 01/01/2007
Category: Wirtschaft/Management
Language: English
Technical Data
Pages: 324
Kopierschutz: DRM
Geräte: PC/MAC/eReader/Tablet
Formate: PDF
Table of contents
Marco Tulio Zanini examines the effects of different industry-specific institutional framework constraints on the level of trust within business organizations, particularly the possible differences in old and new economy. Based on the results of a survey carried out in seven major companies from different sectors of the Brazilian economy, the author shows that trust is more likely to be found in relatively stable, hierarchical and bureaucratic organizations whereas there is comparatively little trust in new economy firms.

Dr. Marco Tulio Zanini promovierte bei Prof. Dr. Birgitta Wolff am Lehrstuhl für Betriebswirtschaftslehre - Internationales Management - der Otto-von-Guericke-Universität Magdeburg. Er lehrt und forscht an der Fundação Dom Cabral, Brasilien.
Table of contents
1. Objectives and Structure of the Argument (p. 1)

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. Academics and researchers have pointed to the importance of interpersonal trust in promoting consensual relationships and facilitating cooperation between individuals within organizations.

The increasing interest of organizational economics and management studies in trust issues is associated with the search for solutions of cooperation problems both within and between contemporary business organizations. Luhmann (2000) notes that unconditional trust which is generated in families and small-scale societies cannot be automatically transferred to complex societies based on the division of labor. According to Luhmann trust relationships are necessary for the reconstruction of special social institutions like friendship networks and patron- client relations. These relationships may guarantee an efficient coordination of economic activities with lower costs.

Given that business organizations consist basically of bureaucratic and hierarchical organizational structures, trust becomes an implicit mechanism for coordination and control of the routinely organizational tasks among individuals. Earlier on, Max Weber (1906/1946) had already noted the many advantages of the abstract regularities of bureaucracies in the execution of authority as efficient structures to coordinate and sustain production of collective actors, basically through the expansion of rationality. Bureaucracies would come to supplant personalized relationships which were highly susceptible to the exclusive dependence on individual influence as a way to govern social systems.

The existence of trust within bureaucratic relationships considerably expands the potential to produce cooperative relationships and managerial efficiency by increasing managerial control through an informal mechanism. Trust allows a reduction of formal hierarchical control and the expansion of the possibilities of producing results through bureaucracies, and therefore, a possible reduction in transaction costs. Intraorganizational trust may enhance organizational performance in a number of ways. The implicit role of trust in coordination and control of many organizational tasks has been observed, facilitating, for example, the knowledge transference process, improving organizational efficiency and productivity, and thus, decreasing transaction costs.

In the economic perspective, insights about trust have come mainly from Transaction Costs Economics (TCE) and Game Theory. In the reasoning of such Rational Choice approaches, trust is defined as "the voluntary risk investment, in advance, in a relationship under the abdication of explicit safeguard mechanisms of control against opportunistic behavior, in the expectation that the other party, despite the absence of such safeguards, will not behave opportunistically." , The economic analytical framework considers trust as a sub-class of risk situations related to human behavior.

It is assumed that trust works as a mechanism in economic systems whereby it increases the effectiveness of transactions, whether they take place in markets or within hierarchies. In line with some authors like Ouchi (1980/1998), Bradach and Eccles (1989/1998), and Adler (2001) we adopt the assumption that trust produced by social structures does not simply replace the market or hierarchies but operates as a third complementary governance structure with these two forms. Therefore, we assume that these three distinct mechanisms may be present in differing degrees in any real existing organization.
Table of contents
Table of Contents14
List of Tables20
List of Figures22
List of Abbreviations24
List of Variables24
1. Objectives and Structure of the Argument29
1.1 Thesis Objectives32
1.2 Relevance of the Study36
1.3 Division of Chapters37
2. Trust from the Economic Perspective39
2.1 Trust and Monitoring39
2.2 Cooperation and Trust42
2.3 An Economic Definition of Trust45
2.4 Properties of Trust47
2.5 Trust within Organizations54
2.6 Trust and Organizational Performance73
2.7 Specific Functions of Trust82
2.8 Conditions for Trust Development94
2.9 Trust and Institutional Uncertainty104
3. The New Economy (NE)117
3.1 Definition117
3.2 A Knowledge-Based Economy122
3.3 Institutional Innovations132
3.4 New Economy and Old Economy139
3.5 Effects of New Economy Characteristics on Organizations149
3.6 The New Telecommunications Industry159
3.7 Institutional Uncertainties168
3.8 The Work Conditions in the New Economy178
3.9 The Brazilian Telecommunications Case Study183
4. Empirical Analysis: Hypotheses and Methods189
4.1 Condensing Literature into a Basis for Empirical Research189
4.2 Main Hypothesis191
4.3 Secondary Hypotheses192
4.4 The Organizations Used for the Study197
4.5 Validation of the Companies Grouping207
4.6 The Questionnaire Survey224
5. Hypotheses Test and Analysis: Trust Thrives Where It is Least Needed241
5.1 Validity Checking of the Variable Relationships241
5.2 Hypotheses Analytical Framework244
5.3 Main Hypothesis Test249
5.4 Secondary Hypotheses Test262
5.5 Main Theoretical Implications271
6. Conclusions and Outlook281
6.1 Contributions to Management Studies284
6.2 Managerial Usage286
List of References289
Appendix 1: The Questionnaire315
Appendix 2 - Comment Sheet Analysis331
Appendix 3  E-Mail model to the CEO345
Appendix 4  Company s Guideline / Research Agreement347