The Multidimensional Form and Role of Trust in the Small Capitalization Debt Finance Market

Abstract

The authors use a trust perspective to highlight the parallels between agency and sociological discussions concerning relationships between banks and small firms. Using the trust typology developed by Lewicki and Bunker (1996), the authors explore how the length and breadth of the bank–firm relationship and the bank's customer orientation influence three dimensions of a small firm's trust in its bank. The paper also explores how bank managers' trust orientations influence a small firm's satisfaction with credit access. The authors test the theoretical framework empirically using a matched sample of 867 small firm executives and the bank managers who had direct responsibility for their accounts.