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The Social Constitution of Trust: Supplier Relations in Britain and Germany

Christel Lane

Faculty of Social and Political Sciences, University of Cambridge, U.K.

Reinhard Bachmann

Faculty of Economics and Politics, University of Cambridge, U.K.

Trust is analysed as a means to reduce uncertainty and risk in vertical inter-firm relationships. Both theoretically and with reference to empirical comparative research (Britain and Germany), it is shown that trust-based relations between buyer and supplier firms rarely evolve spontaneously on the level of individual interaction but are highly dependent on the existence of stable legal, political and social institutions.

Key Words: Descriptors: supplier relations • trust • neo-institutionalism • institutional embeddedness of the firm • Britain • Germany

Organization Studies, Vol. 17, No. 3, 365-395 (1996)
DOI: 10.1177/017084069601700302
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