ABSTRACT
We have seen how trust and learning are vital elements of social capital when activated in the practices of firms, especially those involved in externalized supply-chain relationships. Trust is the reputational ‘glue’ which holds the ‘pieces’ together such that suppliers, customers or joint product or service developers perceive each other to be ‘as good as their word’. Firms may move from a position of placing ‘swift trust’ in a partner by making small initial commitments and learning over time whether trustworthiness is sufficient to risk, further, large commitments. From this, through ‘slow trust’, the kind of goodwill externalities discussed in the previous chapter may arise (Lazaric and Lorenz, 1998; Sako, 1992). Trust and learning go together but they are not interdependent. Learning can very easily be envisaged occurring from a low or no trust context of the ‘cry wolf’ or ‘once bitten, twice shy’ variety. Nor need this be only negative learning since it can help second-guessing, a useful piece in the armoury protecting risk-taking.
