Trust and Control in Strategic Networks of SMEs

This paper provides an analysis of the role played by trust and control in networks of small and medium-sized enterprises (SMEs), with a focus on both their direct and interaction effects on network performance. To delve into the interplay between trust and control, we unpacked control mechanisms into three different forms: output, process and social control. Our hypotheses were tested on a sample of 58 Italian SME networks. Results show that successful cooperation requires trust-based relationships among entrepreneurs. Additionally, the adoption of output control mechanisms reinforces the positive trustperformance link, whereas a substitution effect exists between trust and both social and process control.