Role of Trust in Building a Business Network by Entrepreneurs in Russia

P. 139–148.

Bukhshtaber N.

The literature suggests that interpersonal trust is essential for building effective entrepreneurial networks. According to the 2011 World Values Survey and recent national surveys, more than 60% of Russians believe that caution is warranted when dealing with others. Low levels of social trust may affect entrepreneurs’ readiness to build networks based on trust, which is defined as a psychological state comprising a willingness to act based upon positive expectations of other person’s intentions or behaviour. This paper addresses the role trust plays in the building of business networks by Russian entrepreneurs. It also considers how trust between network participants changes over time. The findings are based on qualitative data gathered from in-depth interviews of 59 entrepreneurs from traditional, low, medium, and highly innovative SMEs. The paper identifies and compares the mechanisms that Russian entrepreneurs representing SMEs in four innovativeness categories use to build trust in their business networks, especially in terms of the cognitive, affective, and behavioural aspects of trust. It also highlights differences in how entrepreneurs representing SMEs in various innovativeness categories use mechanisms of trust to build and govern their business networks. The derived understanding can help entrepreneurial network participants be more effective, especially in terms of avoiding mistakes associated with the underestimation of the importance of trust in building long-term business relations.

Keywords: entrepreneurship, trust, business networks, innovativeness, business relationship management

In book

Proceedings of the European Conference on Innovation and Entrepreneurship, ECIE Volume 2018-September

Academic Conferences and Publishing International Limited, 2018.