Network Organizations in the Global Production Process and Trust between Businesses

Abstract

Network organizations are organizational structures consisting of coordinating basic capabilities and resources in line with their own responsibilities and roles, even though geographically distant businesses are experts in a particular field or function. Businesses are involved in to the networks for reducing uncertainty in global competition, gaining flexibility, acting quickly, and providing capacity, benefiting from resources and talents they cannot have alone, and providing information. However, it is also possible for enterprises to maintain their assets in the network and to benefit from the competitive advantage of the network through providing trust between businesses and ensuring trust. 
 The purpose of the study is to reveal how trust is defined among the enterprises within the network organizations and what constitutes the trusting elements. The universe of the research constitutes businesses operating in Uşak and located in national or international networks with contract manufacturing. The study was conducted using qualitative research method and interview technique. According to research findings; it has been seen that business owners are positively anticipating other businesses within their business networks and they have been working for a long time with the companies which they trust and watching the businesses they have not been trusting for a while and ending their cooperation. According to business owners participating in the interview, trust is equivalent with the fulfilment of given promises, goodwill, quality and intra-family relationships. At the same time, it was stated that trust depends on the businesses; and so, religion, language and race differences are not important.