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Working your Way in: How Trust Problems and Social Embeddedness Affect the Behavior of Home Maintenance Suppliers

Ruijter, E. D. & Weesie, J., Feb-2007, In : Rationality and Society. 19, 1, p. 35 1 p.

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DOI

  • Esther de Ruijter
  • Jeroen Weesie
This article studies the influence of trust problems and social embeddedness on the behavior of home maintenance suppliers, especially (1) their efforts to convince households of their trustworthiness, and (2) whether or not they will behave opportunistically. Data were collected by means of a vignette experiment among 83 home maintenance suppliers, with a total of 165 vignettes. To some extent, the problem potential increases the efforts suppliers make to convince the household of their trustworthiness; a large transaction volume increases the amount of time spent on drawing up a quotation. Suppliers are more likely to behave opportunistically if more complex jobs are involved. Network embeddedness prevents opportunism and decreases the investments made in commitments, while dyadic embeddedness has no effect. Apparently, it is less important for suppliers to invest in dyadic relations than staying on good terms with people who can spread negative information about them to others.
Original languageEnglish
Pages (from-to)35
Number of pages1
JournalRationality and Society
Volume19
Issue number1
Publication statusPublished - Feb-2007

    Keywords

  • household outsourcing, supplier behavior, trust problems, TRANSACTION, ECONOMICS, KINDS

ID: 2783086