Trustworthiness as a Source of Competitive Advantage
Abstract
Three types of trust in economic exchanges are identified: weak form trust, semi-strong form trust, and strong form trust. It is shown that weak form trust can only be a source of competitive advantage when competitors invest in unnecessary and expensive governance mechanisms. Semi-strong form trust can be a source of competitive advantage when competitors have differential exchange governance skills and abilities, and when these skills and abilities are costly to imitate. The conditions under which strong form trust can be a source of competitive advantage are also identified. Implications of this analysis for theoretical and empirical work in strategic management are discussed.
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Trust can lead to competitive advantage only when it is valuable, rare and difficult to build and replicate by competitors (Barney and Hansen 1994).
“This view is largely consistent with strategy theorists who suggest that trust can lead to competitive advantage only when it is valuable, rare and difficult to build and replicate by competitors (Barney and Hansen 1994).”
From Trust, Satisfaction, and Online Repurchase Intention: The Moderating Role of Perceived Effectiveness of E-Commerce Institutional Mechanisms1 (2014) · cites this paper as Barney and Hansen 1994
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- Authors
- Barney, J. B., & Hansen, M. H.
- Affiliations
- The Ohio State University (US)
- Texas A&M University (US)
- Venue
- Strategic Management Journal
- Publisher
- Wiley
- Published
- 1994
- Volume
- 15
- Issue
- S1
- Pages
- 175-190
- ISSN
- 0143-2095 (ISSN-L)
- 1097-0266
- OpenAlex
- W2078989670
- Cited by
- 2,211
- References
- 5
- Citations by year
- 2026: 25 · 2025: 40 · 2024: 57 · 2023: 74 · 2022: 55 · 2021: 86 · 2020: 106 · 2019: 91 · 2018: 80 · 2017: 79 · 2016: 97 · 2015: 110 · 2014: 127 · 2013: 107 · 2012: 114
- FWCI
- 14.34
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Strategic Management Journal (publishedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Management Information Systems › Outsourcing and Supply Chain Management
- Social Sciences › Business, Management and Accounting › Strategy and Management › Business Strategy and Innovation
- Social Sciences › Business, Management and Accounting › Strategy and Management › Innovation and Knowledge Management
- Keywords
- trust, competitive advantage, economic exchange, exchange governance, governance mechanisms, interorganizational relationships
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