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JOURNAL OF LEADERSHIP, ACCOUNTABILITY AND ETHICS
The Benefits of Governing with a Trust-Centric Strategy
Author(s): Kenneth A. Saban, Ryan Luchs
Citation: Kenneth A. Saban, Ryan Luchs, (2011) "The Benefits of Governing with a Trust-Centric Strategy," Journal of Leadership, Accountability and Ethics, Vol. 8, Iss. 3, pp. 43 - 55
Article Type: Research paper
Publisher: North American Business Press
Abstract:
The industrial market is characterized by increased competition and demand for value-laden products. In order to remain competitive, firms must look outside their boundaries to develop additional capabilities. While collaboration with others can be a source of competitive advantage, these relationships are difficult to execute. We explore how trust can enhance the execution of collaborative relationships by first reviewing the existing literature to define what trust is and what benefits can accrue to companies that use trust as a governing mechanism. We then discuss how firms can create a higher level of inter-organizational trust and provide directions for future research.
