A Case Study on the Dynamics of Trust in Dyadic Business Relationships

Otago University
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Proceedings of the 2007 ANZMAC Conference 3Rs: Reputation, Responsibility and Relevance, 2007, pp. 1889 - 1897
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Trust has been widely studied in the context of business relationships and is viewed as one of the drives for relationship development. However, the majority of the studies in the past decades have treated trust as a static construct and ignored its dynamic nature. The research reported in this paper adopts an evolutionary perspective in understanding the dynamics of trust in dyadic business relationships. An in-depth case study was conducted on a sports sponsorship relation with the application of event-based narrative analysis. The findings show that along with the evolution of the relationship, the nature and extent of trust are continually being shaped and restructured by the actions and interactions within and between firms. Trust drives and is driven by the development of relationship in varying manners, depending on the changing circumstances of the relationship environment.
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