Building Trust: A Matter of Proximity?

Babson College Entrepreneurship Research Conference (BCERC) 2007

Frontiers of Entrepreneurship Research 2007

12 Pages Posted: 6 Dec 2007

See all articles by Johan Bruneel

Johan Bruneel

Vlerick Business School

André Spithoven

Belgian Science Policy

Annelies Maesen

Vlerick Business School

Abstract

This paper brings the concepts of proximity and trust empirically together in order to gain insights in their relationship in the context of resource deficient young, technology-based firms and its key partner network. More specifically, we examine the influence of cultural, cognitive and social proximity on the level of interorganizational trust between young, technology-based firms and its key partners. Using a dataset of 290 relationships between young, technology-based firms in Flanders and their key partners, we find that each of the three concepts of proximity has a significant impact on the level of interorganizational trust. Further, we find that the influence of cognitive proximity on interorganizational trust diminishes over time. These results indicate that proximity between young, technology-based firm and its key partners influences the level of trust in the relationship.

Keywords: Entrepreneurship

JEL Classification: M13

Suggested Citation

Bruneel, Johan and Spithoven, André and Maesen, Annelies, Building Trust: A Matter of Proximity?. Babson College Entrepreneurship Research Conference (BCERC) 2007; Frontiers of Entrepreneurship Research 2007. Available at SSRN: https://ssrn.com/abstract=1064201

Johan Bruneel (Contact Author)

Vlerick Business School ( email )

Library
REEP 1
Gent, BE-9000
Belgium

André Spithoven

Belgian Science Policy ( email )

Brussels
Belgium

Annelies Maesen

Vlerick Business School ( email )

Library
REEP 1
Gent, BE-9000
Belgium

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