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Governance Structures and Trust: A Study of Real Estate Networks

Journal on Chain and Network Science, Vol. 16(2), p. 157-170, 2016 DOI: 10.3920/JCNS2015.0008.

19 Pages Posted: 15 Apr 2017  

Joao Mauricio Boaventura

University of Sao Paulo

Adriano Carnauba

University of Sao Paulo

Emanuela Todeva

St. Mary's University; Business Clusters, Networks and Economic Development

Ana Azevedo

University of Sao Paulo

Eduardo Armando

University of Sao Paulo (FIA)

Date Written: September 2016

Abstract

The present study aimed at verifying how different modes of governance structure are linked to different levels of interorganisational trust. Its theoretical grounding involves Transaction Cost Theory, which studies governance of interorganisational arrangements and research on trust in the business field. A descriptive and quantitative approach has been adopted to describe the relation between trust amongst business network participants and the mode of governance adopted by the surveyed networks. Hence, a detailed questionnaire has been employed, which was answered by 35 real estate agency managers, whose participation was directly linked to 11 business networks. By using Spearman methods of identification of non-parametric correlation and correspondence analysis, it was possible to verify that certain modes of governance structure associate with different levels of trust. Considering the scarcity of quantitative research on the theme, this paper contributes to the field by presenting results which point out that collectively-managed governance of regional cooperation networks is linked to high levels of trust; whereas governance of dispersed networks with the presence of a lead company are linked to low levels of trust. Medium levels of trust were observed in networks governed by an administrative organisation. Considering the practical aspect of administration in networks, one can conclude that the process of governance structure in such interorganisational arrangements should include deliberations about the influence of the adopted mode of governance on trust amongst participants. The paper does not allow generalizations of its conclusions beyond its chosen sample.

Keywords: Brazil, Competitiveness, Governance Structure, Real Estate Networks, Dimensions of Trust

JEL Classification: M10, M13, L22, D21, A14

Suggested Citation

Boaventura, Joao Mauricio and Carnauba, Adriano and Todeva, Emanuela and Azevedo, Ana and Armando, Eduardo, Governance Structures and Trust: A Study of Real Estate Networks (September 2016). Journal on Chain and Network Science, Vol. 16(2), p. 157-170, 2016 DOI: 10.3920/JCNS2015.0008.. Available at SSRN: https://ssrn.com/abstract=2952067

Joao Mauricio Boaventura (Contact Author)

University of Sao Paulo ( email )

Av. Prof. Luciano Gualberto 908
São Paulo SP, São Paulo 05508-900
Brazil

Adriano Carnauba

University of Sao Paulo ( email )

Rua Luciano Gualberto, 315
São Paulo, São Paulo 14800-901
Brazil

Emanuela Todeva

St. Mary's University ( email )

Waldegrave Rd
Twickenham, TW1 4SX
United Kingdom

HOME PAGE: http://www.bcned.co.uk/

Business Clusters, Networks and Economic Development ( email )

London
United Kingdom

HOME PAGE: http://www.bcned.co.uk

Ana Azevedo

University of Sao Paulo ( email )

Rua Luciano Gualberto, 315
São Paulo, São Paulo 14800-901
Brazil

Eduardo Armando

University of Sao Paulo (FIA) ( email )

Rua Luciano Gualberto, 315
São Paulo, São Paulo 14800-901
Brazil

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