Abstract

This study investigates antecedents and consequences of interpersonal trust in new and mature market economies. The authors present a model which suggests that interpersonal trust emerges as a consequence of the legal environment and the extent of interfirm managerial control. The model also suggests that interpersonal trust and managerial controls influence performance. Hypotheses are tested in retail petroleum channels in Poland, (former East) Germany, and Norway. The results indicate that the production of trust and performance varies by country. The paper concludes with a discussion of the implications for franchise management and theory.

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