Trust in Cross Border Trade Networks

Omeihe, King; Gustafsson, Veronika; Amoako, Isaac; Saud Khan, Mohammad

Abstract

Purpose
This paper aims to develop an understanding of trust in cross border trade networks dominating West African markets. To date most of the literature on trust and network relationships reveal a paucity of studies about West African traders. This paper attempts to address this gap by examining a range of relationships that have evolved as a result of weak formal institutions.

Design/methodology/approach
Within the scope of this paper, we adopt an interpretivist approach in response to calls for qualitative studies on entrepreneurial networks. Face to face semi-structured interviews with 12 traders active in cross border trade provided insights to the strengths and breadth of West African trade networks. Data was analysed using iterations from the interviews held with the respondents. These iterations helped in exploring emergent themes such as the building of trust relationships and respondent’s perception of institutions.

Findings
We have reasons to believe that the emergence of less formalised institutions provides access to entrepreneurial resources such as market information and new business opportunities. In addition, the empirical component of this study indicates that trust plays a crucial role in cross border trade relationships.

Practical implications
In this vein, we push that the importance of taking trust seriously stems from its unique institutional and cultural embeddedness. By undertaking a context- specific approach, our line of inquiry reveals the potentials of social structures that exist in developing market economy.

Originality/value
This study enriches the view that network ties are crucial in explaining West African cross border trade. In a broader context, the complementary relationship between trust and networks ties highlights the social advantage of collective behaviour.

Citation

Omeihe, K., Gustafsson, V., Amoako, I., & Saud Khan, M. (2018, May). Trust in Cross Border Trade Networks. Paper presented at 3rd Annual Research Conference- Centre for African Research and Economic Development (CAREED), Paisley

• Presentation Conference Type: Conference Paper (unpublished)
• Conference Name: 3rd Annual Research Conference- Centre for African Research and Economic Development (CAREED)
• Start Date: May 31, 2018
• End Date: Jun 1, 2018
• Deposit Date: Nov 22, 2019
• Keywords: cross border trade networks; West Africa; trust relationships
• Public URL: http://researchrepository.napier.ac.uk/Output/2339365
• Related Public URLs: https://research-portal.uws.ac.uk/en/publications/trust-in-cross-border-trade-networks