The role of trust and power in the institutional regulation of territorial business systems

Abstract

This paper discusses the role of trust and power in organizational relationships. In its theoretical part it draws on conceptual ideas of Systems Theory, Structuration Theory and New Institutionalism. The empirical part investigates the English and the German speaking business regions within Europe as two distinct environments which in different ways shape the quality of organizational relationships. Depending the characteristics of these business systems, trust and power will be shown to inter-link with each other in quite specific patterns. The final part of the paper considers some conclusions relevant for European innovation policy