Government Agency and Trust in the Formation and Transformation of Interorganizational Entrepreneurial Networks

Abstract

This article examines the role of trust and government agency in the creation and evolution of interorganizational cooperation among entrepreneurial ventures in general and the influence of trust on development trajectories in particular. The multiple–case approach used draws on five in–depth case studies adopting a focal firm perspective. Trust is shown to play a critical role in the formation, maintenance, and transformation of interorganizational cooperative relationships; whereas its absence results in discontinuation. Moreover, the results suggest that government agency may unintentionally destroy existing, well–functioning, interorganizational cooperative arrangements.