The biggest share in in market economy belongs to entrepreneurs
representing the private sector in implementation of economic activities.
Besides it, consumers, who are decision-making units of the economy, take a
high place in economy and business relations. In our research when we talk
about entrepreneurs, we mean producers producing local and foreign goods
and services in Azerbaijan. Though, not only single economic decision makers
and real factors affect the economy, but also trust, known as social capital, has
an important role. Improving trust between manufacturers and customers has
been seen traditionally as a critical factor in the growth and maintenance of a
successful business relationship. Firstly, this research will search the trust in
different dimensions and notify the relationship between them. In next step ,
we will look through how some social-demographic factors affect consumer
trust on consumer-producer trade relationships. To be more specifically, we
will try to answer questions such as whether suppliers that provide a high level
of trust in a consumer or vice versa reduce transaction costs measuring
empirically whether factors such as age, education, gender and income have an
impact on consumer trust. As a summary result, the fact that producers have a
modest effect on the development of trust between themselves and their
customers, the trust-based producer-consumer relationship really lowers
transaction costs and shows that information sharing among the trusting
parties is high. Another result is that factors such as gender and income have no
effect on the formation of consumer trust. However, compare to those who
have bachelor degree, phd students are more trusted to entrepreneurs . Our findings are very useful for arranging customer demands faster in both private
and public sector and forming more value by creating a trust-based
relationship.
Citation:
Ehmedova, S. (2019). The study of trust as social capital in different dimensions and its role in entrepreneurship relationship. ASERC Journal of Socio-Economic Studies, 2(2), 119-135. DOI:10.30546/2663-7251.2.2.119