Edited By Robertas Jucevicius, Jurgita Bruneckiene and Gerd-Bodo von Carlsburg
Rita Juceviciene & Giedrius Jucevicius - Emergence of Trust in Inter-Organisational Relations: Overcoming Dilemmas in Trust Development
| 255 →
School of Economics and Business, Kaunas University of Technology, Lithuania
Faculty of Economics and Management, Vytautas Magnus University, Lithuania
Emergence of Trust in Inter-Organisational Relations: Overcoming Dilemmas in Trust Development
The current socio-economic environment is gradually recovering from the global financial crisis. Almost every economy in the world experienced a massive slowdown or recession. The causes and consequences of the crisis have been thoroughly researched. In narrow terms, it started with the collapse of Lehmann Brothers in 2008 that caused the snowball effect in financial markets. However, from a broader perspective, one particular element, which ensures stable economic and social relations, was seriously damaged during the period. This element is trust. Trust in financial system, trust in institutions, and trust in the social-economic system as a whole has dramatically declined. The crisis exposed doubts that members of the (socio-economic) system had towards each other; the need for self-protection became a top priority (e.g. banks had introduced additional safeguards before lending capital for business organisations; firms intensified monitoring to ensure all terms in contracts, etc). It induced the emergence of such socio-economic climate where members of the society (e.g. individuals, business organisations etc.) became over-cautious, and in turn led to the formation of the vicious circle of closeness and suspiciousness. In other words, the lack of general trust became pronounced in many areas of social and economic life.
You are not authenticated to view the full text of this chapter or article.
This site requires a subscription or purchase to access the full text of books or journals.
Do you have any questions? Contact us.Or login to access all content.