Trust and organization's performance

Abstract

The aim of this article is to examine the effects of trust on firm’s performance based on theoretical and empirical researches of different countries.

Despite numerous attempts to define trust, despite numerous attempts to define trust, researchers have yet to agree on a definition of the concept. This lack of consensus is largely due to the different contexts in which the concept is used in the various scientific disciplines.

Since its emergence over the last 50 years, the concept of trust has aroused the interest of researchers in many disciplines, including psychology, sociology, economics, computer science, management and marketing, which explains the absence of a consensus definition of the concept.

The paper attempts to answer the following research question: " how does trust influence firm's performance?" To carry out our work, We will address this question in four parts. In the first section we will present the different theoretical conceptions of trust, The second part will focus on analyzing the concept of performance by exploring its various multidimensional aspects , In the third part we will summarize the theoretical and empirical studies analyzing the effects of trust on performance, this research covers both the macro- and micro-economic levels,  Finally, we will conclude our work with a theoretical model that illustrates the results of our literature review, This model can be used as a basis for formulating hypotheses that can be evaluated empirically in subsequent studies.

Among the main conclusions of this paper are the reduction of transaction costs, particularly in family firms, the development of emotional attachment to the firm, the encouragement of creativity and personal initiative.

Keywords: trust, performance, organisation

JEL Classification: A12

Paper type: Theoretical Research