This study investigates the importance of generalized trust, which is not specific to a counterparty and
originates from a broader context. Going beyond prior research that has focused on dyadic, party-specific
trust, we analyze how generalized trust at the regional level affects the extent to which a firm relies on
external suppliers and the performance effects of doing so. Furthermore, we assess how these
relationships are impacted by an economic downturn.
Generalized trust and external sourcing
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