TRUST IN TRANSITION: CROSS COUNTRY AND FIRM EVIDENCE

This paper uses data from a large survey of firms across 26 transition countries to examine the determinants of trust in the transition process. We first introduce a new measure of trust between firms: the level of prepayment demanded by suppliers from their customers in advance of delivery. Using this new measure, we confirm earlier findings that trust is higher where firms have confidence in third party enforcement through the legal system. However, the fairness and honesty of the courts are a more important determinant of interfirm trust than are the courts’ efficiency or ability to enforce decisions. We then examine the role of business networks in building trust and find that networks based around personal ties – family and friends – and business associations actively promote the development of trust, while business networks based on enterprise insiders and government agencies do not. Finally, we find that country-level effects are significantly more important determinants of interfirm trust than are firm-level effects.http://deepblue.lib.umich.edu/bitstream/2027.42/40026/3/wp640.pd

The Transformation of Trust in China’s Alternative Food Networks: Disruption, Reconstruction, and Development

Food safety issues in China have received much scholarly attention, yet few studies systematically examined this matter through the lens of trust. More importantly, little is known about the transformation of different types of trust in the dynamic process of food production, provision, and consumption. We consider trust as an evolving interdependent relationship between different actors. We used the Beijing County Fair, a prominent ecological farmers’ market in China, as an example to examine the transformation of trust in China’s alternative food networks. We argue that although there has been a disruption of institutional trust among the general public since 2008 when the melamine-tainted milk scandal broke out, reconstruction of individual trust and development of organizational trust have been observed, along with the emergence and increasing popularity of alternative food networks. Based on more than six months of fieldwork on the emerging ecological agriculture sector in 13 provinces across China as well as monitoring of online discussions and posts, we analyze how various social factors—including but not limited to direct and indirect reciprocity, information, endogenous institutions, and altruism—have simultaneously contributed to the transformation of trust in China’s alternative food networks. The findings not only complement current social theories of trust, but also highlight an important yet understudied phenomenon whereby informal social mechanisms have been partially substituting for formal institutions and gradually have been building trust against the backdrop of the food safety crisis in China

The embeddedness of global production networks: The impact of crisis on Fiji's garment export sector

In this paper the author explores how changing geopolitical conditions reconfigure network embeddedness and theorises the conditions of network disconnection and transformation. Through a case study of the changes in interfirm relationships within the Fiji – Australia garment-production network after Fiji’s 2000 political coup d’état, the author develops a relational and dynamic view of embeddedness, highlighting its multifaceted and multiscalar character and emphasising the interrelationships between embeddedness, trust, and power

Networks in the shadow of markets and hierarchies : calling the shots in the visual effects industry

The nature and organisation of creative industries and creative work has increasingly been at the centre of academic and policy debates in recent years. The differentiation of this field, economically and spatially, has been tied to more general arguments about the trend towards new trust-based, network forms of organization and economic coordination. In the first part of this paper, we set out, unpack and then critique the conceptual and empirical foundations of such claims. In the main section of the paper, we draw on research into a particular creative sector of the economy - the visual effects component of the film industry - a relatively new though increasingly important global production network. By focusing both on firms and their workers, and drawing on concepts derived from global value chain, labour process and institutional analysis, we aim to offer a more realistic and grounded analysis of creative work within creative industries. The analysis begins with an attempt to explain the power dynamics and patterns of competition and collaboration in inter-firm relations within the Hollywood studio-dominated value chain, before moving to a detailed examination of how the organisation of work and reemployment relations are central to the capturing of value. On the basis of that evidence, we conclude that trust-based networks and collaborative communities play some part in accessing and acquiring leverage in the value chain, but do not explain the core mechanisms of resource allocation, coordination and work organisation

Why forums? An empirical analysis into the facilitating factors of carding forums

Over the last decade, the nature of cybercrime has transformed from naive vandalism to profit-driven, leading to the emergence of a global underground economy. A noticeable trend which has surfaced in this economy is the repeated use of forums to operate online stolen data markets. Using interaction data from three prominent carding forums: Shadowcrew, Cardersmarket and Darkmarket, this study sets out to understand why forums are repeatedly chosen to operate online stolen data markets despite numerous successful infiltrations by law enforcement in the past. Drawing on theories from criminology, social psychology, economics and network science, this study has identified four fundamental socio-economic mechanisms offered by carding forums: (1) formal control and coordination; (2) social networking; (3) identity uncertainty mitigation; (4) quality uncertainty mitigation. Together, they give rise to a sophisticated underground market regulatory system that facilitates underground trading over the Internet and thus drives the expansion of the underground economy

Information theoretic description of the e-Mid interbank market: implications for systemic risk

We present an empirical analysis of the European electronic interbank market of overnight lending (e-MID) during the years 1999–2009. The main goal of the paper is to explain the observed changes of the cross-sectional dispersion of lending/borrowing conditions before, during and after the 2007–2008 subprime crisis. Unlike previous contributions, that focused on banks’ dependent and macro information as explanatory variables, we address the role of banks’ behaviour and market microstructure as determinants of the credit spreads

Consumer-driven innovation networks and e-business management systems

This paper examines the use of consumer-driven innovation networks within the UK food-retailing industry using qualitative interview-based research analysed within an economic framework. This perspective revealed that, by exploiting information gathered directly from their customers at point-of-sale and data mining, supermarkets are able to identify consumer preferences and co-ordinate new product development via innovation networks. This has been made possible through their information control of the supply-chain established through the use of transparent inventory management systems. As a result, supermarkets’ e-business systems have established new competitive processes in the UK food-processing and retailing industry and are an example of consumer-driven innovation networks. The informant-based qualitative approach also revealed that trust-based transacting relationships operated differently from those previously described in the literature

Venture capital internationalization : synthesis and future research directions

Research on venture capital internationalization (VC) has expanded rapidly over the last decade. This paper reviews the extant literature on VC internationalization and highlights gaps in our knowledge. We identify three major research streams within this literature, which revolve around the following questions: (1) which VC firms invest across borders and what countries do they target, with a macro-economic or a micro-economic focus; (2) how do VC firms address the liabilities of non-domestic investing; and (3) what are the real effects of international VC investments? We provide an overview of the contributions in these research streams, discuss the role of public policy, and suggest avenues for future research. Specifically, we call for a deeper understanding of: (1) the functioning and impact of VC firms’ modes of internationalization; (2) micro level processes such as the functioning and decision making of international investment committees, the interaction between headquarters and local offices, or the development of international human and social capital; (3) the role of country institutions in VC internationalization and its real effects; and (4) the interplay of international VC with alternative financing sources