This paper provides an analysis of the role played by trust and control in networks of small and medium-sized enterprises (SMEs), with a focus on both their direct and interaction effects on network performance. To delve into the interplay between trust and control, we unpacked control mechanisms into three different forms: output, process and social control. Our hypotheses were tested on a sample of 58 Italian SME networks. Results show that successful cooperation requires trust-based relationships among entrepreneurs. Additionally, the adoption of output control mechanisms reinforces the positive trustperformance link, whereas a substitution effect exists between trust and both social and process control.
Antoldi, F., Cerrato, D., Larocca, A. A., Trust and Control in Strategic Networks of SMEs, in Proceedings of the 40th Annual Conference of the Institute for Small Business andEntrepreneurship, (Belfast, Northern Ireland, 08-09 November 2017), Institute for Small Business and Entrepreneurship, Barnsley 2017: 1-11 [http://hdl.handle.net/10807/122727]
Trust and Control in Strategic Networks of SMEs
Antoldi, Fabio;Cerrato, Daniele;Larocca, Antonio Angelo
2017
Abstract
This paper provides an analysis of the role played by trust and control in networks of small and medium-sized enterprises (SMEs), with a focus on both their direct and interaction effects on network performance. To delve into the interplay between trust and control, we unpacked control mechanisms into three different forms: output, process and social control. Our hypotheses were tested on a sample of 58 Italian SME networks. Results show that successful cooperation requires trust-based relationships among entrepreneurs. Additionally, the adoption of output control mechanisms reinforces the positive trustperformance link, whereas a substitution effect exists between trust and both social and process control.
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