The bright side and dark side of trust: The mediating effect of franchisor trust on performance

Dana Minarikova, Nada Mumdziev, Michele Griessmair, Josef Windsperger

Veröffentlichungen: Beitrag in FachzeitschriftArtikelPeer Reviewed

Abstract

Previous literature has not examined the dual role of trust in franchise relationships. We extend the franchise and relational governance literature by showing that trust has both a “bright side” and a “dark side” in franchisor–franchisee relationships. Based on transaction cost and knowledge‐based reasoning, we argue that intangible knowledge assets and environmental uncertainty have an indirect effect on performance via trust, due to its relational risk and knowledge exchange effect. Using data from the franchise sector in Germany, we show that trust positively mediates the impact of intangible knowledge assets and negatively mediates the impact of environmental uncertainty on franchisor performance. The first effect refers to the “bright side” of trust showing that intangible brand name assets increase trust which, in turn, has a positive effect on performance. Conversely, the second effect refers to the “dark side” of trust highlighting that environmental uncertainty diminishes trust resulting in a negative effect on performance.
OriginalspracheEnglisch
Seiten (von - bis)116-129
Seitenumfang14
FachzeitschriftManagerial and Decision Economics: the international journal of research and progress in management economics
Jahrgang41
Ausgabenummer1
Frühes Online-Datum27 Okt. 2019
DOIs
PublikationsstatusVeröffentlicht - Jan. 2020

ÖFOS 2012

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