Trust in Islamic Business‐to‐Business Relationships: Evidence from Indonesia. (26th December 2021)

• Record Type: Journal Article
• Authors: Wijaya, Ibrahim Fatwa; Moro, Andrea; Belghitar, Yacine
• Is Part Of: British journal of management. Volume 34:Number 1(2023)
• Page Start: 111
• Page End: 128
• Publication Date: 2021-12-26
• Subjects: Management -- Periodicals; 658.00941
• DOI: 10.1111/1467-8551.12584
• Languages: English
• ISSNs: 1045-3172

Abstract

Abstract: We examine the role of trust within Islamic culture in business‐to‐business relationships by exploring the link between credit officers' trust in business customers and their financing decisions. In line with our framework, which is based on the fact that Islamic culture is characterized by a collectivistic approach and clan‐based social structure, we find that value‐based trust is more important than competence‐based trust in explaining business relationships. The results support the argument that Islamic culture business relationships are grounded more on the principles, values and norms that a partner brings to the relationship than on business skills. Our results are robust to endogeneity and multilevel issues.