Relations between trust and networks

Abstract

Given the increasing importance of networks in the organization of business activities, much attention is given to trust which is inherently linked to non-hierarchical forms of organization. Though trust has been relatively intensively studied, the prior research is rather fragmented. This chapter aims to integrate the theories of trust in networks by combining different streams of research looking separately at the consequences of trust for a network and the effects of networks on trust. A model combining these two perspectives is offered, suggesting that a high level of either trust or density can produce a virtuous cycle of exploitation.