Institution-based Trust in Interfirm Risk-sharing Practices: Ownership Compatibility in Contractual Relations in China

Time：April 23 (Thursday) 10am -12noon

Location: Zhifuxuan, National School of Development, Peking U.

Speaker: Yang, Ling, Assistant Professor, School of Economics and Management, Tsinghua University

 

 

Abstract：

Whereas extant research assumes that institutional trust resides in effective national institutions, I redefine institution-based trust in a fragmented and localized national environment as institutional compatibility in the inter-organizational identification process based on shared institutional logics. Employing contractual relations involving small and medium enterprises and their buyers in China, I find that institutional compatibility, captured by compatibility in the supplier's and the buyer's ownership types, significantly increases the likelihood of contractual risk-sharing, demonstrating the effect of institution-based trust in mitigating contractual risks. I also find that the impact of institutional compatibility is contingent on relational and regional contexts but is not susceptible to ownership forms and market dynamics. I further discuss the impact of such institutional trust on contractual relations and economic development.
 

杨灵老师于斯坦福大学社会学系获得博士学位，主要研究领域为组织理论和经济社会学。目前研究项目包括制度逻辑和社会关系在中小企业合同、融资和政治行为中的作用，以及私营企业主与创业、企业社会责任研究。