The study of trust as social capital in different dimensions and its role in entrepreneurship relationship

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.


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