Abstract

This study investigated the function of time (as a moderator, determinant or quasi moderator) within hi tech Small to Medium Sized Enterprise (SME) downstream (i.e., customer) trust-based relationships. A four antecedent (i.e., competence, transaction specific investments, flexibility and coercive power) research model was developed to represent trust within the SME business-to-business (b-to-b) relationships. Time was conceptualized chronologically as duration of a relationship in years. The model was empirically tested with 117 respondents from the UK Original Equipment Manufacturing (OEM) sector. The research outcome supported a significant and positive moderating effect of time on competence to trust and flexibility to trust pathways. However, time had a negative moderating yet significant effect on the association between coercive power and trust. Correlation between Transaction Specific Investments (TSIs) and trust was significant but time showed neither moderating nor deterministic effect on the TSIs to trust link.

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