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  The Economic Nature of Network Capital in B2B Transactions
Paul N. Wilson
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  Abstract
 
Social scientists, including numerous economists, have explored the incidence and importance of social capital embedded networks as a governance mechanism in business operations. The buyer-seller dyads represented by twelve large-scale dairies and seven feed suppliers were studied to contribute to our understanding of network capital in business-to-business (B2B) transactions. A high incidence of institutional and personal trust was found in these buyer-seller networks. Trust facilitates economic exchange through uncertainty management, information sharing, and time savings.

 

 
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2011 Dept. of Agricultural & Resource Economics, The University of Arizona
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Last updated November 3, 2005
Document located at http://ag.arizona.edu/arec/pubs/researchpapers/abstract2005-05.html