Trust and the successful coordination of SME co-operation – an empirical study in Slovenia

Matthias Fink, Alexander Kessler, Mojca Duh, Jernej Belak, Richard Lang

Abstract


This paper aims to investigate the role of trust and test the impact of trust on performance in the context of co-operation between small- and medium-sized enterprises (‘SMEs’) in a transition country. Based on a sample of 122 Slovenian SMEs, an analysis based on OLS regression reveals that trust does have a strong impact on performance. We thereby identify trust as a powerful co-ordinating mechanism for SME relationships involving co-operation in transition economies.


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