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Production of trust: institutional sources of economic structure

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... This study will focus on three types of trust: trust in reviews, the marketplace, and the rating systems. To guide this investigation, the study will adopt the institutional-based trust model, which posits that consumers trust the assurances and endorsements provided by third parties (Zucker, 1986;Shapiro, 1987;Pavlou and Gefen, 2004). ...
... From the perspective of consumer trust, studies such as those conducted by Pavlou and Gefen (2004) have determined that marketplaces play an essential role in mitigating transaction risks, fostering a trustworthy environment, and encouraging online transactions. According to these authors, this phenomenon is explained by the theory of institutional-based trust (Zucker, 1986;Shapiro, 1987), which is particularly relevant in online markets where buyers often engage in transactions with new and unfamiliar sellers, relying on third-party protections that establish an institutional framework. ...
... Likewise, this is a central element in forming long-term relationships (Muharam et al., 2021). Similarly, customer trust can increase significantly when the marketplace is perceived to have a good reputation (Kim and Ahn, 2007) and is aligned with the studies by Pavlou and Gefen (2004) that are based on the theory based on institutions (Zucker, 1986;Shapiro, 1987) to demonstrate the importance of trust towards the marketplace seen as a community since it acts as a guarantor of positive experiences and influences the perceived effectiveness of the transactional behavior of buyers. ...
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Purpose The research focuses on the crucial role of online reviews in shaping consumer trust in e-commerce platforms, examining the impact of perceived authentic and fake reviews on purchasing decisions and platform reputation. It assesses how consumers perceive review authenticity and quality and their effects on trust levels in reviews, marketplaces, and reputation systems. It also explores the relationship between trust forms and overall experiences. Design/methodology A quantitative approach is employed, utilizing a questionnaire distributed to recent Mercado Libre buyers. To test hypotheses, data from 326 valid responses are analyzed using confirmatory factor analysis and Partial Least Squares Structural Equation Modeling (PLS-SEM). Findings Findings reveal that fake review perception negatively affects trust in rating systems, while high-quality reviews positively influence all trust forms. Customer experience is directly impacted by trust in marketplaces and rating systems, indicating a mediation effect of trust in the rating system on the relationship between fake review perception and customer experience. Research limitations/implications Limitations include using a convenience sample and focusing on trust in the rating system rather than reviews or the marketplace, suggesting avenues for future research. Practical implications include recommendations to ensure review quality, enhance rating system controls, and promote review usage in the purchase process. Originality The study addresses a timely and relevant gap in understanding the impact of reviews on e-commerce trust, particularly within the context of Latin America and Mercado Libre’s dominance in the region’s e-commerce landscape.
... Institutional Trust Theory (Zucker, 1986) can serve as a theoretical framework for understanding the effects of trust in government, relational trust, counterterrorism policies, and counterterrorism laws on fear of both cyberterrorism and terrorism. This theory posits that citizen trust in institutions depends on relational trust in government and the institutions' ability to meet citizen expectations by creating mechanisms such as establishing new organizations or restructuring current ones, as well as developing and implementing effective legislation and regulations. ...
... Trust is defined as 'a set of expectations shared by all those involved in exchange' (Zucker, 1986, p. 2). Trust has two dimensions: calculative and relational (see Earle, 2010;Earle, Siegrist, & Gutscher, 2010;Mayer, Davis, & Schoorman, 1995;Van Der Does et al., 2021;Zucker, 1986). Calculative trust refers to citizens' confidence in institutions' ability to meet their expectations (Zucker, 1986; see also Earle, 2010;Mayer et al., 1995;Van Der Does et al., 2021), whereas relational trust pertains to the belief that institutions share similar values with individuals, fostering a sense of connection (see Zucker, 1986). ...
... Trust has two dimensions: calculative and relational (see Earle, 2010;Earle, Siegrist, & Gutscher, 2010;Mayer, Davis, & Schoorman, 1995;Van Der Does et al., 2021;Zucker, 1986). Calculative trust refers to citizens' confidence in institutions' ability to meet their expectations (Zucker, 1986; see also Earle, 2010;Mayer et al., 1995;Van Der Does et al., 2021), whereas relational trust pertains to the belief that institutions share similar values with individuals, fostering a sense of connection (see Zucker, 1986). In simpler terms, calculative trust and relational trust relate to matters of the mind (i.e. ...
Article
This study investigates the effects of trust in government, relational trust, counterterrorism policies, and counterterrorism laws on fear of cyberterrorism and fear of terrorism. The data were collected from randomly selected college students at a university in the United States (N = 353). The results of path analyses using structural equation modeling for both unmediated and mediated models indicated that trust in government was the only factor significantly reducing fear of both terrorism and cyberterrorism. Additionally, trust in government mediated the effects of relational trust, counterterrorism laws, and counterterrorism policies on fear of both terrorism and cyberterrorism. Furthermore, respondents were more fearful of cyberterrorism than terrorism. The results and limitations are discussed. ARTICLE HISTORY
... In asymmetric partnerships, social dissimilarity may be controlled by boundary-spanners who can function in both environments. Trust is developed through shared meanings and socialization (Zucker 1986;Nonaka 1996). Socialization may be improved by interactions and shared experiences at the individual level. ...
... Notifying of scheduling changes demonstrates respect for the small party with limited resources. Zucker (1986) stresses the requirement to designate a "translator" to access knowledge that is highly specialized or idiosyncratic, in keeping with organizational boundary-spanners idea, having knowledge of both worlds that was previously articulated. Trust is fostered through stability and security (Erikson 1950;Creed and Miles 1996). ...
... The manifestation of commitment may take the form of relationshipspecific investments, such as the time and urgency of the important boundary-crossers and management. At both an organizational and a personal level, reputation serves as a major source of trust (Zucker 1986;Creed and Miles 1996). To establish confidence, intermediaries' reputations (Zucker 1986;Sydow 1998). ...
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This study examined the influence of organizational culture on the adoption of agile methodology and the influence of organizational culture on agile methodology in terms of service delivery. The specific objectives of this study are to examine the effect of organizational culture of trust on agile methodology use and adoption; to investigate the effect of organizational culture of collaboration on agile methodology use and adoption; to examine the effect of organizational culture of knowledge sharing on agile methodology use and adoption; to investigate the moderating effects of trust on agile methodology use and project cost, completion time, scope, and project quality; to determine the moderating effects of collaboration on agile methodology use and project cost, completion time, scope, and project quality; and to investigate the moderating effects of knowledge sharing on agile methodology use and project cost, completion time, scope, and project quality. The survey research design was adopted for this study, with the target population of all the IT firms in Germany. A total of 132 respondents were selected as participants for this study using the convenience sampling technique. A web-based questionnaire was adopted in collecting data for this study. The questionnaire contained important information about the personal data of the respondents and their organizations, items on agile methodology, organizational culture, and service delivery were also included in the questionnaire. This study adopted both descriptive and inferential statistics in analyzing the data collected. In testing the hypotheses, Pearson correlation and Mediating analysis were adopted. The study found and concluded that organizational culture of trust, teamwork, collaboration, and knowledge sharing influence the adoption of agile methodology among the sampled respondents. The study also concluded that organizational culture of trust, teamwork, collaboration, and knowledge sharing positively and significantly mediated the relationship between agile methodology use and project success in terms of project cost, scope, quality, and delivery time. Based on the findings, it was recommended that organizations develop viable means through which positive culture could evolve and thrive.
... Institutions are human-devised systems of informal constraints and formal rules that structure political, economic, and social interactions (North, 1991). Trust facilitates transactions and lowers uncertainty by establishing legitimate expectations of institutional conduct (Zucker, 1986). ...
... Companies cultivate reputational trust through transparency, governance structures, and ethical conduct (Bjørnskov, 2010). Trust in business institutions fosters innovation, encourages investment, and promotes a competitive marketplace (Zucker, 1986). The burgeoning commercial space industry, exemplified by companies like SpaceX, underscores the importance of trust in fostering public-private partnerships, attracting investment, and achieving long-term commercial goals (Brady & Orlinski, 2022;Eriksson & Newlove-Eriksson, 2023). ...
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This study examines the nexus between national space programmes, economic impact, and public trust using datasets of the United Kingdom Space Agency (UKSA) and the National Aeronautics and Space Administration (NASA). Quantitative analysis of economic indicators over 2010-2022 reveals steady growth in the UK space sector following the National Space Strategy launch. Regression results demonstrate significant correlations between strategic investments and increased income, enterprises, exports, and productivity. Comparative analysis shows that the UK space industry remains in earlier developmental stages versus NASA's expansive ecosystem. Further examination of policies and reports shows different viewpoints of the agencies, with NASA emphasising a mission-oriented leadership and UKSA focused more on commercial aspects and capacity building. Surveys indicate higher public trust and awareness toward NASA compared to UKSA. Key policy insights suggest sustained counter-cyclical investments, participatory engagement, and inspirational narratives can help mature the UK industry but realism is required regarding timelines and risk management. As the landscape diversifies, balancing national interests with principles of sustainability and multilateralism grows imperative. The findings affirm space strategy as a catalyst for technological capability development, economic growth, and soft power accumulation if aligned with societal interests. By fostering institutional credibility across government, industry, and citizens, national space programmes catalyses reciprocal innovation, national prestige, and broader societal gains. Further research should incorporate expanded datasets and emerging space nations to reveal new models and priorities as humanity navigates the New Space Age.
... In the communication process, the generation of trust is also believed to be based on different mechanisms. For instance, Zucker [1986] believes that trust can be divided into three different mechanisms, based on process, characteristics, and institution. Peters and colleagues [1997] believe that the generation of trust is based on three different dimensions: knowledge and expertise; openness and honesty; concern and care. ...
... To explore the differences in the use of trust strategies by different science communicators and their communication effects, based on the trust classification proposed by Zucker [1986] and Peters and colleagues [1997], this study summarizes trust into the following three types: trust based on expertise; trust based on moral character; and trust based on identity similarity. These three different mechanisms can point to three different identity strategies: expert identity strategy, which emphasizes one's professional identity in the communication process to gain trust; quality identity strategy, which emphasizes or shapes one's admirable moral qualities during the communication process, such as honesty, openness, and trustworthiness; and intimate identity strategy, which emphasizes a similar identity and life experience to the audience in the communication process to gain trust. ...
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Science communication has seen a trend of diverse communicators in recent decades, who adopt different identity strategies to gain audience trust. This study focuses on the strategies used by three different groups of science communicators, including scientists, citizens and institutions, as well as the potential effects that may arise from these different strategies in terms of audience trust through quantitative content analysis. The findings show that communicators have biases towards using different strategies. There are also significant differences in the trust effects generated by different strategies used by different science communicators in different science topics. This indicates that the effect of science communication varies for different groups of science communicators and different science topics, and it is difficult to generate a universally applicable model, which further corresponds to the current trend of ‘diversification’ and ‘contextualization’ in science communication research.
... Similar results are found with respect to the ethnic diversity of classrooms. When teachers and student share socio-economic and ethnic backgrounds, supportive and trustful relations are likely to be stronger (Alexander, Entwisle, and Thompson 1987;Zucker 1986). Nevertheless, supportive relationships in mixed classrooms can also have compensating effects (Agirdag, Van Houtte, and Van Avermaet 2012) and the way teachers respond to diversity at school is a more crucial factor than the diversity itself (Thys and Van Houtte 2016). ...
... Finally, it is worth reflecting on the potential importance of shared background between teachers and students. Indeed, there are indications that a shared ethno-cultural and/or socioeconomic background fosters teacher-student relations (Alexander, Entwisle, and Thompson 1987;Zucker 1986). However, recent research seems to suggest that a positive impact of racial/ethnic similarity between students and teachers on, e.g. ...
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Supportive teacher-student relations are crucial to stimulate academic success and well-being of students. These relations can become more strained in urban schools characterised by high levels of socioeconomic inequality and ethnic diversity. However, supportive relations between teachers and students can be nurtured and be part of school policy. In this paper, we engage with these issues via two approaches, based on newly collected survey data among 541 teachers working in 23 urban secondary schools in Flanders (Belgium). First, we study teachers' perceptions about the level of individual and collective teacher support in these schools. Next we study teachers' perceptions about the participation among stakeholders in school policy, the involvement of parents , their views on mono-or multilingualism, and the presence of human and material resources in school. In a final phase, by engaging in structural equation modelling, we study if these factors explain variation in individual and collective teacher support.
... According to Zucker (1986), changing social conditions such as economic instability, lack of labor rights, and the Great Depression lead to decreased relational trust because they affect the capacity to be involved in exchange relationships (see also Haack et al., 2021;Zucker, 1986). This void was filled by institutional trust, which led to many of the New Deal programs and increased government involvement in health and social services. ...
... According to Zucker (1986), changing social conditions such as economic instability, lack of labor rights, and the Great Depression lead to decreased relational trust because they affect the capacity to be involved in exchange relationships (see also Haack et al., 2021;Zucker, 1986). This void was filled by institutional trust, which led to many of the New Deal programs and increased government involvement in health and social services. ...
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Previous research shows that health and social service networks can improve service and system coordination and increase capacity to respond to critical social determinants and health needs. This article describes strategies, methods and tools used to engage community health workers (CHWs) in the development and implementation of initiatives associated with the COVID-19 Response Network, a collaborative between academicians, regional clinical and social service administrators, practitioners, and regional community and faith-based organizations. Network initiatives included community-based participatory action (CBPT) research approaches to respond to social determinants and health needs in rural Missouri during the COVID-19 pandemic. Mixed methods were used to ascertain the impact of these approaches, including surveys and key informant interviews with Network members. Survey responses showed the network to be a venue where decision-making was democratic, CHW voices were valued, and network members trusted each other. Analysis revealed two themes: How the Network improved CHWs’ capacity to respond to the COVID-19 pandemic (“Getting a seat at the table”) and how trust is built through relational exchange processes (“They need to believe in you”). The results clarify practical approaches to participatory action research for bringing together and maximizing the contributions of a combination of CHWs, clinicians, and administrators in clinical and social services stakeholders in the community in leadership positions to improve health outcomes. Implications for academic researchers and academic institutions are discussed.
... indeed, trust has received considerable attention in such disciplines as experimental psychology (Rotter, 1971(Rotter, , 1980(Rotter, ), philosophy, sociology (garfinkel, 1963goffman, 1971), economics (williamson, 1993Zucker, 1986) and political science (Harding, 1991). accordingly, many descriptions have been attributed to the concept of trust. ...
... Shapiro et al., 1992). with institutional-based trust Zucker (1986) reasons the enabling environment could be created to produce trust between trading partners who have no previous experience of each other's commercial record. in this case trust could be ensured via such structural mechanisms as rules, law enforcement agencies, licensing among others. ...
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Today’s business and commercial undertaking have taken on a dimension that defies the traditional rules of conducting business. Trust, is influential in changing the pattern of work in business strategizing within and between organisations. Issues of complexity and uncertainty are increasingly becoming the norm both within and between organisational interactions. In this regard trust is crucially needed to strengthen the bond of relationships between a firm’s employees and a company’s strategic partners to realise the maximum possible co-operation in a mutually fulfilling manner. The present essay places trust in wider organizational perspective with a consideration of its dynamics in both within and between organisations. The challenge lies on how organisations formulate policies and put in structural mechanisms to sustain the relationships that go a long way to engender trust both within and between an organisation’s trading partners. The intranet and extranet constitute one such technological invention that is spearheading intraorganisational and interorganisational networks. The analysis is primarily situated within this context to bring out the divergent matters that come to the fore when trust is activated within and between organisations. This paper looks at trust from various theoretical standpoints and discusses the many implications of its presence, inadequacy or absence in both intraorganisational and interorganisational networks. The paper concludes with suggestions for examining trust in future research in the subject area.
... However, trust is also categorised in various ways by other scholars. Zucker (1986) distinguishes between institution-based, process-based, and characteristic-based trust. McAllister (1995) differentiates between cognitive-based and affect-based trust, while Sako (1992) differentiates between contract, competence, and goodwill trust. ...
... This form of trust is often rooted in prior knowledge about the exchange agent (Zucker, 1986) and is based on relationships or personalized sources embedded in social networks (Welter and Smallbone, 2006). In a related way, inter-organizational trust, as defined by Zaheer et al. (1998), pertains to the trust members of one organization have in another organisation's members. ...
... However, trust is also categorised in various ways by other scholars. Zucker (1986) distinguishes between institution-based, process-based, and characteristic-based trust. McAllister (1995) differentiates between cognitive-based and affect-based trust, while Sako (1992) differentiates between contract, competence, and goodwill trust. ...
... This form of trust is often rooted in prior knowledge about the exchange agent (Zucker, 1986) and is based on relationships or personalized sources embedded in social networks (Welter and Smallbone, 2006). In a related way, inter-organizational trust, as defined by Zaheer et al. (1998), pertains to the trust members of one organization have in another organisation's members. ...
... Research has consistently demonstrated that perceived benevolence of leaders, characterized by the demonstration of goodwill and the genuine concern for the well-being of employees, significantly influences the emotional bond and trust between managers and subordinates (Chen et al., 2014;Dirks & Ferrin, 2002;Hiller et al., 2019;Legood et al., 2021;Tomlinson et al., 2020). Individuals also frequently infer high ability and integrity in management, which has made benevolence a key antecedent of trust building between human managers and subordinates (Fletcher, 2001;Kark et al., 2003;Lapidot et al., 2007;Miller, 2015;Zucker, 1986). ...
... Second, emotional experience is seen as integral for a genuine desire to help others (Ashforth & Humphrey, 1993;Barasch et al., 2014;Grandey, 2003;Gross, 1998;van Kleef, 2016), so the lack of an ability to experience emotions should reduce the perceived benevolence of AI management compared to human management. Given that benevolence is a primary driver of trust in leadership (Fletcher, 2001;Kark et al., 2003;Lapidot et al., 2007;Miller, 2015;Zucker, 1986), we anticipate the lower perceived benevolence of AI management, versus human management, will harm trust and that perceptions of benevolence mediate the relationship between AI, versus human, management and trust. ...
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As organizations continue to supplement and replace human management with artificial intelligence (AI), it is essential that we understand the factors that influence employees’ trust in AI management. Across one preregistered field study, where we survey 400 delivery riders in Mainland China, and three preregistered experiments (total N = 2,350), we find that AI management is perceived as less benevolent than human management. Given that benevolence is an important antecedent of trust in leaders, this perception has a negative effect on trust in AI management, even when controlling for perceived ability and integrity. Employees prefer human management to AI management in high empathy demand contexts, where individuals seek management that can empathize and experience the emotions that they are feeling, as opposed to low empathy demand contexts. These findings deepen our understanding of trust and provide important theoretical and practical insights on the implementation and adoption of AI management.
... The former involve the transformation of unwritten norms in specific contexts into laws and regulations that can be applied in general situations. Zucker (1986) noted that laws and regulations can provide structural safeguards that can facilitate the establishment of mutual trust between partners under the normative force of institutional sanctions, thereby ensuring the success of their cooperative efforts. The latter emphasizes societal expectations regarding consistency and normativity (Gemar, 2024;Smith, 2010); in turn, this pressure often leads NFEs to engage in behaviours that conform to social norms with the aim of obtaining recognition and support from CFs. ...
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Sustainable development is a crucial way not only of promoting the economic success of family businesses but also of ensuring their long-term stability and prosperity. As a central element of relational governance, trust plays a vital role in efforts to align the interests of principals with those of agents, and this factor has received significant attention in the context of family businesses. Stewardship theory further posits that granting agents sufficient authority and trust can effectively encourage them to engage in stewardship behaviours that are more in line with the overall interests of the organization, thus providing a new theoretical perspective on agency problems as well as a practical approach that can be used to address these issues. In traditional Chinese culture, family businesses benefit from deep-seated family values and unique relational networks, which confer on them a distinctive governance logic and a system rooted in foundational trust. On the basis of survey data collected from 281 nonfamily chief executive officers (CEOs) in China, this study empirically examines the impact of trust between controlling families (CFs) and non-family CEO (NFEs) on the sustainable development performance of family businesses. The findings of this research are as follows: (1) Trust between CFs and NFEs is developed through the exchange of economic benefits, the integration of social emotions, and the establishment of institutional structures, thus leading to three forms of trust: calculative trust, relational trust, and institutional trust. Calculative trust can inhibit the sustainable development performance of family businesses, whereas relational trust and institutional trust can enhance such performance. (2) Calculative trust reduces stewardship behaviour on the part of NFEs, thereby weakening the sustainable development performance of family businesses. Conversely, both relational trust and institutional trust can promote stewardship behaviour on the part of NFEs, thereby strengthening the firm’s sustainable development performance. This study addresses gaps in previous research on this topic and offers valuable insights that businesses can use to take advantage of trust to improve their sustainable development outcomes.
... Luhman sees that the system that works is the object of trust, but some research shows that the trust system is personal trust. A new institutional-based trust was introduced by Lynne G. Zucker [21] [22], who grouped three different sources of trust, namely (1) process-based trust, (2) character-based beliefs, and (3) institutional trust. ...
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Assessing metacognitive beliefs among science education students based on the metacognition Questionnaire-30 (MCQ-30) AIP Conference Proceedings (April 2021) Values in mathematics classroom held by pre-service teachers AIP Conf. Proc. Abstract. This study aims at a general trust-based approach to Distance Learning (PTTJJ) Institutional collaboration; this study explains how sensemaking can be the primary influence of institutional trust to collaborate. Institutions that have regulative solid, normative, and cognitive structures can play a role in inspiring trust among collaborations both at the interpersonal and inter-institutional levels. The research found that institutional actors of public trust sensemaking in institutional collaboration are poorly explored in the literature. This research study was conducted on Open University (UT) Students, UT Collaboration Partners, and UT service user Communities in UPBJJ Eastern Indonesia. In this study, the method used was field research through causal survey research using a Likert scale of 1-5, namely (1) significantly disagree; (2) Disagree; (3) hesitating; (4) Agree; and (5) strongly agree. We argue that the unresolved issue is how institutions more precisely form the basis for relationships of trust. Second, we explore how sensemaking can serve as a bridge between institutional contexts and interpersonal trust processes. We argue that institutions 'emerge' rather than 'impact .'The relevance of this sensemaking view to bridging institutional and interpersonal-based trust processes is illustrated by reviewing case studies of how trust is created in foreign political turbulence and environments.
... Trust refers to a psychological state reflecting one's intention to accept vulnerability based on positive expectations of another's behavior (Rousseau et al. 1998). In contrast to affective trust, which is based on an emotional bond with and genuine concern for the welfare of another, cognitive trust is grounded in one's available knowledge and "good reasons," which are based, in part, on another's perceived reliability and dependability (McAllister 1995;Rempel, Holmes, and Zanna 1985;Zucker 1986). Consistent with social exchange theory (SET), which suggests individuals weigh the perceived costs and benefits of engaging in exchanges of resources with others Homans 1958;Zhang and Epley 2009), we expect that when supervisors perceive female subordinates to have greater FWC, they are less likely to believe that female employees can be relied upon (i.e., trusted) to fulfill their work obligations and, thus, reciprocate the resources that supervisors invest in them (e.g., time, energy, and money). ...
Article
Family‐to‐work conflict (FWC) bias captures an erroneous assumption that women have more FWC than men. Existing research has relied on a “lack of fit” perspective (i.e., women have less person–job and person–organization fit compared with men) to explain why this bias detracts from women's work outcomes. Building on this, we propose a novel social exchange cost explanation for these effects. We argue that FWC bias promotes a belief in supervisors that female subordinates are less reliable in fulfilling work duties and, therefore, less able to reciprocate resources invested in them. This concern, we maintain, is manifested in their diminished cognitive trust in their female (vs. male) subordinates. In turn, we argue that supervisors, because of their lower cognitive trust, will reciprocate by engaging in greater ostracism of their female (vs. male) employees. To test these predictions, we conducted three studies, including an experimentally randomized instrumental variable design, a multisource field survey using supervisor–subordinate dyads, and an experiment in which we utilized a bias‐disrupting strategy. Overall, our findings suggest that women are perceived as having greater FWC than men, leading supervisors to have less cognitive trust in them relative to men, which in turn, manifests in greater ostracism of female subordinates.
... As Williamson (1996) pointed out, the way these concepts are usually employed assumes that when firms cooperate out of trust or according to norms, they do not try to assess incentive compatibilitythat is, whether their counterpart has an economic incentive to honor their trust or reciprocate their cooperation. Firms instead assume that their partner will cooperate due to a history they share, or due to the larger social context in which the transaction takes place (e.g., Zucker, 1986). In economic models of relational contracts, on the other hand, firms formulate a cooperation strategy by considering their own and their partner's economic payoffs from cooperating or not at each stage of the relationship, and discount future payoffs appropriately. ...
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For many firms, designing governance structures for their inter-organizational relationships is a key strategic challenge. Strategic management and other management scholars have successfully applied concepts from sociology, economics, and organization theory to analyze this challenge. Despite their attention to the relational dimension of governance, however, these scholars have drawn very little from a stream of economics research that directly addresses relational governance and has become established in that field: namely, the economics of relational contracts. In this essay, we discuss what the economics of relational contracts can add to management studies of the governance of interorganizational relationships. We explain how the economics of relational contracts sheds light on the relative roles of, and interactions between, the shadow of the past and the shadow of the future in supporting interorganizational collaboration. In so doing, we suggest how economic models of relational contracts can radically change the interpretation of observations that management scholars have made about collaborative relationships they have studied. We also show how the economics of relational contracts literature can contribute to the extended debate about whether and when contracts are substitutes or complements for unwritten agreements. Finally, we discuss implications for the ways in which the economics of relational contracts can help us to better understand the governance of inter-organizational relationships.
... Second, time allows getting to know one's partners, their behavior, and their reputation for reciprocity, which in turn facilitates the development of trust. Older BIAs allow for process-based trust to develop (Zucker, 1986), as ongoing relationships generate familiarity among members and facilitate observability that helps build each member's reputation (Ostrom & Walker, 2003). Information on members' past actions vis-à-vis reciprocity is central to sustain collective action (Ostrom, 1990). ...
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This article examines the relationship between business interest associations’ (BIAs’) governance configurations and their access to administrative officials and political heads of the European Union. We focus on how effective BIAs design their plenaries and boards to address the inclusiveness-efficiency tradeoff. By means of a qualitative comparative analysis, we find that most of the configurations related to administrative officials balance efficiency-inclusiveness tensions, one prioritizes inclusion while another focuses on efficiency. As for political heads, EU Commissioners seem to prioritize BIAs that successfully balance these contradictory poles while also paying attention to more inclusive BIAs.
... Following the 'institutions-based trust' line of thought (Zucker, 1986), we argue that deepening relationships with banks through DFIN requires confidence in the overall institutional context. Solid and trustable institutions and transparent and effective regulations can ensure banks' security and integrity, thereby promoting the transition to financial inclusion. ...
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Mobile money consists of payments through mobile devices using Fintech platforms. Despite the accelerated mobile money adoption in developing countries, financial inclusion levels lag those in the developed world. We unveil how disruptive Fintech can foster financial inclusion, by examining a sample of nearly 70,000 observations from 70 emerging countries in 2021. Our results indicate that mobile money and its associated epidemic effects enhance the transition to deposit and credit-based financial services if institutional conditions and banks’ financial technologies are well aligned. This suggests that non-banks’ Fintechs can facilitate the uptake of financial services provided by conventional banks.
... Generalized trust encompasses a society's historical, social, economic, and institutional traditions and development, playing a crucial role in fostering cooperative relationships, thriving democracies, and economic growth (Ostrom, 2002;Putnam et al., 1994), where risk-taking with strangers and casual acquaintances is required. According to Zucker (1986), when individuals share signals, rules, and interpretations of the world, they tend to perceive the world and others as predictable, leading to higher levels of trust. Generalized trust can thus establish background expectations and reduce transaction costs. ...
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Trust is vital for effective collaboration, but its impact on collaboration performance has produced inconsistent findings. This study examines the trust-collaboration performance link by testing the moderating effects of diverse conceptual and contextual factors. Through a comprehensive meta-analysis of 31 empirical studies, we synthesize siloed findings and offer a systematic and evidence-based examination of the trust-collaboration performance link. Our findings show that the trust-collaboration performance relationship is positive and stronger when trust is cognition-based rather than affect-based, when performance content focuses on process and outcomes, and when performance is subjectively measured. In addition, trust is more important in low generalized trust countries and in cross-sectoral or nonprofit collaboration. These moderation effects manifest differently in different collaboration forms, with trust playing a less salient role in contracting. These findings unravel the nuanced dynamics of trust within collaboration and have substantial implications for scholars and practitioners in collaborative governance and network management.
... Structural assurance is perceived as objective structural conditions based on institutions. Zucker [30] conceptualizes structural assurance as institutionalized structural constructs, encompassing mandatory legal contracts, commitments, and regulatory systems, which instill consumers with the belief in successful consumption. Shapiro [31] defines structural assurance as typically referring to objective structural conditions such as contracts, guarantees, regulations, commitments, and oversight. ...
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The development of the Autonomous vehicle industry contributes to achieving the environmental, economic, and social sustainability goals. Autonomous vehicles (AVs) involve highly autonomous and complex intelligent driving technology, and their large-scale commercial application depends on the level of public trust in their safety and reliability. Therefore, how to establish and enhance public trust in AVs has become the key to the development of the AV industry. This study discusses the impact of technical structural assurance, social structural assurance, and individual cognitive factors on trust in AVs. This study uses a structural equation model to analyze a valid sample of 548 participants from China. The results show that autonomy has a negative impact on trust, and currently, personal cognitive factors exert a greater influence on trust compared to technical and social structural assurance factors in China. In theory, this study combines the trust-in-automation three-factor model with the concept of structural assurance to reveal subjective controllable factors that can promote public trust. In practice, this study reveals the important role of structural assurance factors in enhancing trust before fully automatic driving technology is officially launched.
... As definições de confiança se tornam relevantes para cenários específicos, mas parece que negligenciam a captura de sua natureza ampla. Nas organizações, a confiança institucionalizada é descrita como compreendendo três elementos-chave: ações específicas, individuais e firmes, intermediários e regulamentos (Zucker, 1986). Todos os três mecanismos são vistos como contribuindo para os níveis de confiança necessários para o intercâmbio econômico (Tan & Woodward, 2005). ...
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The concepts of safety climate, employee trust in the organization and well-being at work formed the basis of this study, which aimed to understand the consequences of the relationship between such variables in the work environment of organizations. The logic defended here, and which follows the guidance of the specialized literature on such topics, is that (1) a worker is more productive when his level of trust in the organization is high and (2) when he is in a safe working environment. In addition, (3) presents better indicators of well-being at work in such a context. The study contributed to the diagnosis of the safety climate in organizations, by presenting initial evidence of the validity of the Safety Climate Scale. A total of 249 workers from different organizations in several Brazilian states participated in the study, 138 (55.4%) men and 111 (44.6%) women, aged between 19 and 62 years (mean age of 31.4 years and standard of 9.21 years). Of the participants, 53 (21.3%) were from public organizations, 166 (66.7%) from private organizations and 30 (12%) from outsourced organizations. Participants responded to 4 instruments: the first containing socio-demographic data (sex, age and type of organization), the second related to the safety climate, the third used to measure employee confidence in the organization and finally the fourth with the objective of measuring well-being at work. The results indicated satisfactory statistical indices that recommend the use of the confidence climate scale in investigations in Brazilian samples. The structural equation modeling technique revealed a positive and significant influence of the safety climate on employee trust in the organization and on well-being at work. The results of the present study contribute to the adoption of strategies aimed at achieving both a safety climate in the organization and the well-being and trust of the employee in the organization. The study also indicates the need for further investigations in order to better understand the relationship between safety and well-being at work.
... To understand this point, one need only think about recommendations sought and given by trustworthy intermediaries for various service providers (legal counsel, mechanics, doctors, and so on). Thin interpersonal trust, then, depends significantly on the reputation of the trustee as well as that of the intermediary of trust (see Zucker 1986). ...
... This theory is relatively popular in democratic countries, one of the drivers behind such popularity being that democratic institutions usually use trust as a measurement for existential validity. This theory assumes that the better the institutional track record is the better the chances that it stands to be trusted by people (Zucker, 1986). In the case of this study, the ITT is significant in that it enables the authors to link trust issues in the public sector space, such as the root causes to a trust deficit and possible outcomes. ...
... Effective escrow services create a transaction environment in which even unruly passengers are forced to behave in a socially acceptable manner, thereby preventing free-riding and ensuring that BoP drivers are paid (Gefen et al., 2003;Pavlou & Gefen, 2004;Schippers & Soetevent, 2024). Consequently, BoP drivers may perceive less uncertainty regarding economic benefits and develop more trust in ridesharing platforms (Hu et al., 2004;Pavlou & Gefen, 2004;Zucker, 1986). ...
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Despite the potential benefits for drivers at the base of the pyramid (BoP) of IT‐driven ridesharing businesses, drivers are susceptible to uncertainty owing to their low education and incomes, potentially compelling them to engage less in ridesharing over time. Although this important sociotechnical phenomenon has garnered increasing attention, IS studies on this topic are scarce. Drawing on uncertainty reduction theory, we explored mechanisms for reducing BoP drivers' uncertainty and building their trust to enable them to engage in ridesharing. We identified three means of uncertainty reduction at three levels: trust in passengers, trust in ridesharing platforms, and the effectiveness of ridesharing institutional mechanisms. Using a sequential, triangulated mixed‐methods approach, we conducted 30 semi‐structured interviews to explore trust building with drivers and used data provided by 303 ridesharing drivers to quantitatively test the proposed research model. We found that perceived empathy and information congruity increased BoP drivers' trust in passengers, whereas effective escrow services, perceived justice, matching accuracy, and a high level of privacy control increased BoP drivers' perceived trust in ridesharing platforms, motivating them to engage more frequently with ridesharing platforms. Furthermore, the results indicated that increasing trust in both passengers and ridesharing platforms and improving the effectiveness of ridesharing institutional mechanisms can enhance BoP drivers' engagement in ridesharing. We conducted 30 follow‐up interviews with BoP drivers to corroborate the quantitative results and draw robust inferences.
... Scott (1999) defines institutions as "cultured-cognitive, normative, and regulative ele ments that, together with associated activities and resources, provide stability" (p.48). Stable institutions in the form of shared norms, values and common standards of be havior thus contribute to minimizing the risk of being betrayed and regulate behavior in accordance with expectations (Bachmann 2001; see also Zucker 1986, Powell 1996, Fukuyama 1995. Likewise, "social rules" (Bachmann 2002, 5) existing within the orga nization regulate the actions of its members. ...
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The coordination of action between teaching and planning staff is a key process for the facilitation of adult learning in organizational settings. Informed by system theory, structuration theory and neo-institutionalism, trust and power are identified as mechanisms of social control in the context of such coordination processes. The present paper explores how these mechanisms regulate the coordination of action between teaching and planning staff in adult education organizations. 18 expert interviews were analyzed by means of structuring qualitative content analysis in order to address the research question. The findings point to the regulative significance of personalized mechanisms of social control against the background of rather weak institutional arrangements.
... Several authors define types of trust that differ from one another in origin and context: situational trust, acquired trust and dispositional trust (Marsh & Dibben, 2003); assured trust and decided trust (Luhmann, 2001); calculated trust, personal trust and institutional trust (Williamson, 1993); interpersonal trust (Hardin, 2006); intuitu personae trust, relational trust and institutional trust (Zucker, 1986). ...
Conference Paper
The literature regarding trust between a human and a technological system is abundant. In this context, trust does not seem to follow a simple dynamic given the multiple factors that impact it: mode of communication of the system, appearance, severity of possible system failures, factors favoring recovery, etc.In this work, we propose a modeling of the dynamics of the trust of a human agent towards an autonomous system (Human Autonomy Teaming HAT) which is inspired by a hysteresis cycle. The latter reflects a delay in the effect in the behavior of materials called inertia. According to this same principle, the variation in confidence would be based on a non-linear relationship between confidence and expectation. Thus, these variations would appear as interactions occur (like a discrete variable), rather than on a continuous time scale.Furthermore, we suggest that trust varies depending on: the conformity of expectations, the previous level of trust, the duration of maintaining a good or bad level of trust, and the interindividual characteristics of the human agent.Expectations reflect the evaluation of the situation estimated by the human agent on the basis of the knowledge at its disposal and the expected performance of the system. At each confrontation with reality, if the perceived reality agrees with the expected then the expectations are consistent, otherwise they are non-compliant. Depending on the initial state of trust, these expectations will influence the variation in trust. The latter is determined through the hysteresis cycle. At both ends of the cycle, the level of trust is characterized as either calibrated trust or distrust. Indeed, confidence does not increase towards a maximum, but towards an optimal level: calibrated confidence. This is a level of confidence adapted to the capabilities of the autonomous system. Conversely, trust decreases to a level of distrust. This corresponds to the situation where the individual does not trust the system and rejects it. In our context of use, the individual is obliged to continue to interact with the autonomous system, which opens the possibility of overcoming this distrust and restoring all or part of the initial trust.We propose that maintaining this level of calibrated trust or distrust results in an inertia effect. The more trust is maintained at one of these levels, the greater the inertia. Thus, calibrated trust established over a short period of time will be more affected by non-compliant expectations than calibrated trust established over the long term.Furthermore, the evolution of trust is influenced by individual criteria. Although the model described here is generic, it can be personalized according to the predispositions of the human agent: propensity for trust, personality trait, attitudes towards technological systems, etc.The model presented is not intended to debate the nature of trust. It illustrates and explains the dynamics of trust, a key factor in the HAT relationship, both at the origin of this interaction and for the results it produces.
... As such, cooperation necessarily requires actors -independent of the actor being an individual or an organisation (Kroeger, 2012) -to take a certain risk that the action of the other may be harmful (Dietz, 2011). To overcome the state of a paralyzed and reclusive society, it is trust understood as the 'psychological state comprising the intention to accept vulnerability based upon positive expectations of the intentions or behavior of another' (Rousseau et al., 1998, p. 393) that enables cooperation and secures its smooth proceeding (Hardin, 2002;Luhmann, 1988). 1 Generally, the benefit of trust for partnerships has been recognized widely and informed a plethora of empirical studies across the disciplines (Barber, 1983;Bidault & Castello, 2009;Fukuyama, 1995;Kappler & Schomaker, 2023;Lascaux, 2005;Lewis & Weigert, 1985;Luhmann, 1979;Möllering, 2006;OECD, 2011;Putnam, 1993Putnam, , 2000Sztompka, 1999;Zucker, 1986) and also in the specific case of PPPs (Brogaard, 2019;Edelenbos & Klijn, 2007;Klijn et al., 2010;Schomaker & Bauer, 2020;Warsen et al., 2018). Put simply, large parts of the extant literature on the cooperationtrust nexus -independent of the (economic or political) yardstick used -consider trust as an explanatory variable and agree on a positive relationship between trust levels and both procedural and outcome indicators. ...
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Trust is known to be beneficial for cooperation, though remains underdeveloped in public-private partnerships (PPPs), which are caught in a trust trap due to the cooperative regime’s internal heterogeneity. Accordingly, PPP’s inherent trust relationship is disentangled, and the burden of divergent actor rationales is introduced. We hypothesize that potential PPPs find themselves ex ante in a situation that requires certain repair mechanisms before the ‘usual’ venues of trust development can become effective. As such, exogenous information is theorized as quasi-substitute for relational experience that may support the development of a ‘leap of faith’. Theoretical considerations are tested by a vignette experiment with representatives of both the public and the private sector. Within and between-group analyses find strong support for the burden of divergent rationales and stable levels of (role-based) trust. However, the effect of the information treatment on trust levels is limited.
... The relationships underlying the social capital of family firms are usually built on reciprocal trust, which involves making oneself vulnerable to the other party over time (Arregle et al., 2007;Mayer et al., 1995;Rotter, 1971;Zucker, 1986). In facilitating interaction, coordination, and decision-making (Chaudhary et al., 2021), trust may serve as a remedy to risks and potential conflicts family firms face in uncertain situations, such as integrating new partners into their networks (Ingram & Morris, 2007;Powell et al., 2005;Rivera et al., 2010;Rosenkopf & Padula, 2008). ...
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As personality varies among individuals, even in the same situations, each person carries his or her own unique set of trust in government. The idiosyncrasies of person might have to do with trust in government. An increasing body of empirical work demonstrates the significance of personality in the public sector. However, relatively little is known about how personality affects trust in government. In particular, previous research has not appropriately paid attention on trust in different government institutions. To fill the void, this article aims to examine the impact of personality on trust in government by using the Chinese samples from the World Values Survey. Extraversion is negatively associated with trust in overall government. On the contrary, agreeableness is positively linked to it. Interestingly, neuroticism is positively associated with trust in court and police.
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In this paper, we position generalised trust as central to the debate on elites’ assessments of trust in EU multi-level governance. We leverage one of the most influential factors in explaining political trust in single-government studies to understand variations in trust towards political authorities at various levels. Departing from existing studies, we hypothesise the dual nature of generalised trust: while it influences how individuals assess their trust in political authorities, its impact varies depending on different degrees of perceived similarity of these authorities at either the national or the EU level. To test our hypotheses, we conducted an elite vignette experiment involving 567 decision-makers from public and private stakeholders within regulatory regimes in eight countries. The results reveal a significant positive effect of generalised trust on political trust when evaluating a national-level regulatory agency. However, trust assessments of EU-level regulatory agencies appear to be largely unaffected by generalised trust levels. Furthermore, we observed notable differences in trust assessment between private and public stakeholders, reinforcing our argument that similarity and community belonging underlie the influence of generalised trust on political trust. Our study suggests that EU-level political authorities may derive less benefit from high levels of generalised trust, compared to national political authorities. However, in instances where generalised trust is low, political authorities at the EU level have comparatively more opportunities to cultivate trust in them.
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Higher education institutions (HEIs) can be considered both objects and subjects of societal change. They are impacted by transformations in society, including technological advancement, climate change, demographic shifts, and geopolitical tensions, but they are also in a position to create a positive impact on society. This requires HEIs to adapt to changing external contexts, which has implications for how education and research activities are designed and implemented, and how organisational structures and practices are reconfigured to strengthen linkages between universities and society. How higher education adapts to multiple and often conflicting demands and how through adaptation, HEIs can become more active change agents in society were of central interest to the 2023 CHER (Consortium of Higher Education Researchers) Conference and this special issue. The seven contributions presented herein provide a contemporary account on adaptation and impact in European higher education drawing on diverse theoretical perspectives, empirical data, and geographical contexts.
Chapter
The chapter explores how legal professionals navigate fields of non-knowledge within the Argentine justice system, emphasizing their imaginative practices. It begins by providing an interdisciplinary overview of research on imagination and discusses its methodological treatment in anthropology. Drawing from philosophical and anthropological studies, the chapter explores legal professionals' perspectives on and utilization of imagination. Overall, legal professionals prioritize rational methodology over imaginative thinking and also reject imaginaries of the public. However, the empirical material reveals that they indeed resort to imaginative thinking when confronted with unknowable aspects in their work. Imaginative processes provide immediate knowledge and explanatory models that bridge gaps left by rational methods, enabling social action within complex legal contexts. These imaginings condense into a larger social imaginary. Despite varied political and philosophical positions, it reveals that legal professionals harbor suspicions of manipulation by powerful groups. This social imaginary shapes ethical self-perceptions and decision-making processes within the legal system, influencing interactions and legal proceedings. The chapter underscores the integral role of imaginings in legal professionals' collective understanding and behavior, impacting the dynamics and outcomes of legal processes through a pervasive culture of non-knowledge, suspicion, and skepticism.
Chapter
In this chapter, the insight that mistrust is based on certain knowledge gaps serves as the starting point for examining non-knowledge and ignorance within the justice system. The theoretical discussions on ignorance and non-knowledge are first reflected upon, including their methodological implications. Recognizing the justice system as a knowledge-producing institution, the chapter then explores legal professionals' perceptions of others' non-knowledge, their own positioning within knowledge dynamics, and the significant fields of non-knowledge they encounter in their work environment. Various types of legal knowledge—theoretical, practical, and social—are examined alongside their limitations. The empirical findings highlight that legal professionals uphold a regime of ignorance, positioning themselves as experts with superior knowledge, while viewing the public as uninformed or misinformed about the legal system. This expertise secures their employment and social status. Despite acknowledging the natural limits of knowledge, legal professionals are unsettled by intentionally created fields of ignorance, fearing the loss of their own intellectual superiority. They perceive human agency, particularly powerful actors, as sources of manipulation, reinforcing a pervasive sense of insignificance within the justice system.
Chapter
The chapter investigates the dynamics of trust and mistrust among legal professionals in the Argentine justice system, aligning with anthropological studies on state bureaucracy. Interdisciplinary studies and theories on trust and mistrust are presented initially, followed by a discussion of the current state of research and reflections on the methodological implications of dealing with mistrust. Subsequently, the chapter traces the debates on trust and mistrust within Argentine society and explores how legal professionals perceive and respond to these issues. The chapter then delves into suspicious practices within the judiciary, revealing widespread and multifaceted mistrust among legal professionals. They value mistrust as vigilance, foresight, or a defense mechanism against potential manipulation and societal deceit, essential for navigating social complexities. This chapter enriches ethnographic work by contextualizing global discourses on trust and mistrust within local realities, challenging prevailing assumptions about mistrust in legal contexts. It emphasizes the historical, social, political and cultural roots of Argentina's culture of mistrust while rejecting simplistic explanations.
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This paper presents a comprehensive analysis of the benefits, obstacles, and ramifications of integrating blockchain technology into public sector functions, specifically focusing on economic and legal aspects. The discussion commences with an examination of the societal relevance of blockchain technology, as it is poised to dramatically enhance procedural efficiency within public sector organizations. Subsequently, the paper delineates the primary research objectives, which encompass identifying the multitude of benefits of blockchain technology for the public sector, investigating its legal and economic consequences, and scrutinizing the challenges that public sector organizations might face during implementation. Research methodologies employed to attain these objectives consist of an extensive literature review and qualitative primary data acquisition from field experts. Findings reveal that blockchain technology holds the potential to augment the swiftness and dependability of administrative procedures while bolstering data security within public sector organizations, albeit some legal and economic apprehensions persist. Regardless of these challenges, the authors maintain that the public sector is poised to reap significant rewards from blockchain technology deployment due to its capacity to modernize and streamline operations, as well as its capabilities for precise and verifiable data storage. Research limitations include a scarcity of available primary data and reliance on a singular data collection method. Suggestions for future research involve conducting additional studies addressing the questions raised in this research and supplementing the findings with user perspectives.
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This research is motivated by the phenomenon of the existence of two groups managing zakat (government and society) making up two large parts of the field of zakat management in Indonesia. The government and its institutions are used as the main focus of zakat collection targets by the National Zakat Amil Agency (BAZNAS) while the general public and private companies are more targeted objects for zakat collectors by the National Zakat Amil Institute (LAZNAS). In terms of legal regulations, the implementation of zakat in Indonesia shows cooperation between BAZNAS and the government to collect zakat funds from government employees to all institutions. However, in reality the results of collecting zakat, infaq and alms are still far below the existing potential, so there is still a need for synergy in various fields for the two groups of zakat managers. The aim of this research is to find out how there is communication synergy, coordination synergy and innovation synergy between the Pati National Amil Zakat Agency, the Amil Zakat Institute and the Regional Government of Pati Regency in managing zakat. This type of research uses qualitative research methods with the researcher as the key instrument in recording and collecting data through interviews, observing, collecting documents from zakat collection institutions and the Pati district government. Meanwhile, data analysis was carried out using an interactive analysis model. The results of this research conclude that 1. The form of communication synergy between the National Amil Zakat Agency of Pati, the Amil Zakat Institute of the Ministry of Religion of Pati and the Regional Government of Pati Regency is carried out formally by invitation or coming directly to the institution, or communicating using a digital platform by prioritizing the context of mutual brotherhood. need in managing zakat. The messages conveyed in the communication process are of high quality because the language is communicative, the message content is needs-oriented and delivered in a friendly manner. Feedback from communication shows support, openness and sincerity as well as high enthusiasm and commitment. 2). The form of coordination synergy is coordination synergy in planning, potential, cooperation in zakat education, distribution, joint program synergy and synergy in reporting. The mechanisms for coordination synergy include goal setting, stakeholder identification, payroll collection. Coordination synergy in monitoring and evaluation by sharia auditors or public accountants. 3). Synergy of innovation is carried out in Strengthening Zakat Regulations including the issuance of Regent's regulations on zakat, the issuance of regional regulations on zakat, b. Institutional strengthening includes the development of new UPZs, collaborative data analysis with religious instructors, routine quarterly coordination with fellow zakat managers, c. Program synergy, including zakat education with socialization and guidance of UPZ, distribution of zakat other than ashnaf 8, distribution of zakat for disaster response
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A historically informed understanding of ḥawāla and other varieties of informal value transfer systems (IVTS) requires consideration of the normative and cultural elements which structure and facilitate transactions in globalized financial markets. This paper argues that the Sharia-based normative and cultural framework of ḥawāla is created in the social relations of Muslim networks and that, in a criminal law context, this normativity can be used as a tool to discern between legitimate and illegitimate transactions. The new institutional economists’ (NIE) explanation of ḥawāla, which predominates in scholarly work, neglects this common frame of reference built on community, shared belief, and normative rules and expectations. The NIE views economic institutions through the lens of profitmaking and self-interest centred institutional development. Moreover, in a criminal law context, the profit-oriented perspective of law overlooks the normative characteristics that sometimes appear in the transactional characteristics of these transactions. When evidence of these characteristics is presented to the court, they offer a useful tool to differentiate legitimate from illegitimate transfers of value. Legitimate transfers will frequently be facilitated through dense networks in which the normativity and culture of ḥawāla frame the rules and expectations of parties to the transaction. Criminal transactions, on the other hand, typically involve fewer participants, sometimes from different ethnic and linguistic backgrounds, are profit-orientated, and involve means of enforcement such as the use of violence which traditional networks do not employ. The NIE perspective does not fully account for non-western legal orders or for commercial practices in which exchange remains culturally, historically, and socially embedded.
Chapter
We review and differentiate workplace favoritism from related concepts in the sociology, anthropology, political science, psychology, and management literatures, with a focus on the causes and consequences of perceived workplace favoritism. Management research’s neglect of favoritism may account for employees’ persistent perceptions of favoritism despite longstanding organizational policies to eradicate it. We correct an overemphasis on supervisory causes, as well as the literature’s primary attention to positively oriented concepts (e.g., the benefits of being in the in-group), rather than the negative effects of workplace favoritism can have on individuals and organizations (e.g., the costs of being in the out-group). We develop a theoretical framework based on a wide-ranging review of related social sciences for an integrated understanding of perceived workplace favoritism and discuss avenues for future research.
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Financial education can influence the level of financial literacy. In many countries public authorities implement financial education policy by means of ex ante certification of both private and public providers of education activities. This article uses political economy, educational marketing and text analysis as complementary tools to offer a positive analysis of such setting. Being financial education a credence good and given the key assumption that financial literacy is a country state–contingent endowment that deteriorates, as a consequence of innovation, the third-party certification can be considered as a strategic governance solution. Yet, when a public agency acts as third-party certifier, political and bureaucratic incentives shape its action. In particular, political activism in financial education can be motivated by financial instability worries. Such theoretical relationship is empirically confirmed applying text analyses, and using financial education narrative as a proxy for activism both for the politicians of the European Parliament and the bureaucrats of the ECB in the period 1997–2024.
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A scale of structural requisites of administrative rationality is hypothesized, tested with a sample of thirty-four organizations in varied social settings, andinterpreted as measuring cumulative specificity of organizational roles and their motivation by internal organizational devices. Institutional correlates ofthe scale are explored and suggest that independence from the social setting is positively correlated with rationality. Ascriptive elements in the social setting are found to be negatively related to rationality. Certain hypotheses concerning organizational development are proposed in light of the findings.
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In a closely observed study of two Indonesian towns, Clifford Geertz analyzes the process of economic change in terms of people and behavior patterns rather than income and production. One of the rare empirical studies of the earliest stages of the transition to modern economic growth, "Peddlers and Princes" offers important facts and generalizations for the economist, the sociologist, and the South East Asia specialist. ""Peddlers and Princes" is, like much of Geertz's other writing, eminently rewarding . . . Case study and broader theory are brought together in an illuminating marriage." Donald Hindley, "Annals of The American Academy of Political and Social Science " "What makes the book fascinating is the author's capacity to relate his anthropological findings to questions of central concern to the economist . . . " H. G. Johnson, " Journal of Political Economy ""
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Contrary to currently popular notions of organizational culture, we claim that the existence of local organizational cultures that are distinct from more generally shared background cultures occurs relatively infrequently at the level of the whole organization. We also argue that, with respect to organizational performance, particular properties of local organizational culture are more important than others and that local organizational culture will be more critical to performance in one range of organizations than in others. We conclude by applying our point of view to the problem of changing organizational cultures and argue that they are more adaptive than is currently thought.
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In the manner of the Creole tradesmen of Louisiana, whose lagniappe to their patrons is legendary, the Editor offers a similar bonus to readers of the Review. Instead of trifling presents added to a purchase, however, our lagniappe will be notes and documents illustrative of the evolution of business enterprise.
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This study uses an integrated macro and micro organizational behavior perspective to focus on the difficulty that directors of public agencies have satisfying multiple interest groups. It highlights the conflicting expectations of three interest groups and discusses the implications of these conflicts for the internal decision-making process. The effects of the conflict between the staff's evaluation of effectiveness and the number of clients processed on the role of the agency director are examined. Directors facing conflicting expectations experienced significantly more role-related difficulties than directors facing complementary expectations.
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Using the language of exchange theory, this paper analyzes how organizational culture emerges out of the institutional arrangements developed to regulate the exchanges or transactions between members of a social group. From an analysis of the costs of social exchange, the etiology of these institutional arrangements is traced, their characteristics are defined, and three ideal-typical cultural forms are discussed.
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Durkheim's analysis of organic solidarity in The Division of Labor contains ambiguities and contradictions. These difficulties can be resolved by abandoning the concept of organic solidarity, as Durkheim himself did in his later work. But if Division is unsuccessful in attaining its explanatory goals, it remains important as Durkheim's first comprehensive analysis of mechanical solidarity.
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This study develops a general model of the relationship between variables measuring organizational environments and executive succession within organizations, with particular emphasis on the role of executive movement in developing stable patterns of interorganizational interaction. Such factors as (1) the number of organizations in the industry, (2) the difference in industry concentration from a median value, (3) the growth rate in industry sales, (4) the rate of technological change, (5) the average debt to equity ratio, and (6) the average firm size are related to characteristics of executive recruitment for 20 manufacturing industries. It is found that the movement of executives between firms, which is one form of interorganizational communication, is consistent with hypotheses dealing with the possibility of developing coordinated structures of interorganizational behavior.
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The board of directors is considered as an instrument for dealing with the organization's environment. In a random sample of eighty nonfinancial corporations, elements of board size and composition are shown to be systematically related to factors measuring the organization's requirements for coopting sectors of the environment. Organizations that deviate more from an empirically estimated optimal board structure equation are likely to perform more poorly, compared to industry standards.
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Administrative intensity in school districts is studied from a theoretical perspective which considers the political and bureaucratic constraints under which resource allocation decisions are made. Hypotheses are formulated about the effect of enrollments and money, growth and decline, and tax elections on kinds of personnel. Federal revenues have stronger effects on supportive personnel than state or local revenues, and districts appear to be more responsive to changes in enrollments and revenues when they have not recently had tax elections than when they have, regardless of whether the tax proposal failed or passed. Growing districts add personnel faster than declining districts in response to changes in enrollments and also in response to changes in revenues.
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Our research analyzes the effects of immigration on the rate of growth of educational expansion in the United States from 1890 to 1970. Previous studies have shown that the presence of nativist, Protestant-millenial groups was associated with the early expansion of public primary enrollments. Immigrant groups provide an important contrast to such groups, and several interpretive histories of United States education stress the relationship between immigration and schooling. Using aggregate, time-series analyses, we find that: (1) immigration decreased the rate of growth of public primary and secondary enrollments between 1890 and 1924; (2) immigration increased the rate of growth of private primary and secondary enrollments during this period; (3) immigration increased the rate of growth of public primary and secondary enrollments between 1925 and 1970; and (4) immigration decreased the rate of growth of private primary and secondary enrollments during the period. These findings show that the effect of immigration on the aggregate rate of growth of schooling has varied as a function of the character of the immigrants themselves.
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Professor Chandler uses data compiled by two of his students, Harold C. Livesay and P. Glenn Porter, whose work is condensed in the charts and tables which accompany this article, to propose a historical explanation for the changing industrial structure of the modem American economy.
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The conceptual problem addressed here is the transition of the United States from a person-oriented society in the 19th century to a corporate society during the 20th century. Using the content analysis of mass media records from 1877 to 1972, annual networks of associations among categories of actors are analyzed for trends in their structure where zii is a percentage of attention given to actors in the ith category of actors and zij is a percentage of attention given jointly to actors in the ith and jth categories. Stable estimates are found for the increasing attention given to corporate entities, the decreasing attention given to persons, and the increasing use of unorganized collectivities of actors as a means of interaction between persons and corporate entities. “Ideal type” networks are identified and described which are reflected in the observed networks as a function of existing conditions in the nation. Distinct ideal types are associated with conditions of economic decline, conditions of unusual collective action by the populace, and conditions of joint economic growth and lack of collective action. Implications of the findings for the study of persons and corporate entities in a corporate society are discussed.
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In a famous chapter of his Principles of Psychology William James analyzes our sense of reality.¹ Reality, so he states, means simply relation to our emotional and active life. The origin of all reality is subjective, whatever excites and stimulates our interest is real. To call a thing real means that this thing stands in a certain relation to ourselves. “The word ‘real’ is, in short, a fringe.” ² Our primitive impulse is to affirm immediately the reality of all that is conceived, as long as it remains uncontradicted. But there are several, probably an infinite number of various orders of realities, each with its own special and separate style of existence. James calls them “sub-universes” and mentions as examples the world of sense or physical things (as the paramount reality), the world of science, the world of ideal relations, the world of “idols of the tribe”, the various supernatural worlds of mythology and religion, the various worlds of individual opinion, the worlds of sheer madness and vagary.³ The popular mind conceives of all these sub-worlds more or less disconnectedly, and when dealing with one of them forgets for the time being its relations to the rest. But every object we think of is at last referred to one of these sub worlds.“
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