Corporate governance and evolution of trust in entrepreneurial networks
Purpose: Concerning that limited explanation exists examining the function of corporate governance in trust processing within entrepreneurial network development, the purpose of this paper is to explore trust evolution and the role of corporate governance in an entrepreneurial network. Design/methodology/approach: This paper makes an innovative exploration based on the case study of NVC Lighting Holding Limited. Findings: It proposes that in the initial period of network relationship which is based on entrepreneur’s individual social network and embodies sole social network embeddness, entrepreneurial network relies more on affective trust than contractual trust. When stepping into extending period of network relationship which reflects separate embeddedness of social and market network, however, entrepreneurial network has an equal reliance on both affective trust and contractual trust. With further development, when ushering in the phase of maturity which undergoes superimposing embeddedness of both social and market network, entrepreneur network inclines to rely more heavily on affective trust than contractual trust. During the whole process, it can be found that the reliance of entrepreneurial network on trust has the tendency to transfer from affective trust to contractual trust. Furthermore, decreasing of equity ratio of founders and strengthening of controlling right heterogeneity in the corporate governance have facilitated the transfer process and the entrepreneurs’ authority has restraining effect on the evolution of the process. Originality/value: Through case study, this paper presents the trust evolution process in different stages of entrepreneurial network. Another important theoretic contribution of this paper is that it reveals the function of corporate governance in trust processing within entrepreneurial network development.
Year of publication: |
2019
|
---|---|
Authors: | Wang, Shiquan ; Shang, Guoyin ; Zhang, Shuang |
Published in: |
Chinese Management Studies. - Emerald, ISSN 1750-614X, ZDB-ID 2280185-6. - Vol. 13.2019, 4 (04.11.), p. 939-966
|
Publisher: |
Emerald |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Hometown sentiment : CEO hometown identity and company audit fees
Lv, Jingxin, (2022)
-
Zhang, Hao, (2016)
-
CEO-TMT faultline and corporate green innovation : the contextual role of Confucian culture
Wang, Shiquan, (2023)
- More ...