The Social Control of Impersonal Trust

At the crossroads: Future directions in trust research

“…Only in the absence of institutional safeguards, it is argued, may trust develop and become significant with regard to the governance of business relationships. Where behavioural control is achieved by means of institutional rules, the argument goes, trust can neither flourish nor is trust necessary (Shapiro, 1987). In other words, it is either trust or institutions which will prevail in a relationship.…”

“…Here, the argument is that in the case where the (potential) trustor and the (potential) trustee do not know each other through direct contacts, a third actor known to and trusted by the first two actors may function as an intermediary and thus play an essential role in the development of trust between the two parties (Coleman, 1990;Shapiro, 1987). The third party guarantor can do this job in that he or she bridges over both parties', i.e.…”

The Impact of Business Process Outsourcing on Firm Performance and the Influence of Governance: A Long Term Study in the German Banking Industry

“…As a strategy though, we consider governance not just in terms of pre-specified frameworks, but also those frameworks that emerge in interactions between client and provider (Mintzberg, 1978). Three forms of governance that corporations can choose when considering make-or-buy decisions are widely recognized: 1) the hierarchy is an institutionally derived, authority-based form where all operations are performed in-house; 2) the market is an institutionally derived and transaction-based governance form where all operations are 'purchased' from external providers; 3) the network (or hybrid) is a sociallyderived informal form where operations are performed partly in-house and partly externally (Shapiro, 1987;Williamson, 1994). These forms differ with respect to governance structures: research on inter-organizational relationships, and, more recently, on IT outsourcing, has recognized the existence of arm's length vs. embedded governance structures in interorganizational relationships (e.g.…”

A Time to Trust

“…Zucker (1986) pointed out three ways of trust production: 1) process-based trust tied to past exchanges, 2) characteristic-based trust tied to personal char acteristics, such as family background and ethnicity, and 3) institutional-based trust tied to formal societal structures. (Shapiro (1987) Miyamoto (in this volume) develops a theory of interpersonal relation derived from G. H. Mead's approach. In the theory, he presents a psychological frame work balancing direct behavior and deep cognition for the understanding of, for example, the differences of character between the Japanese and Americans.…”