The Importance Of Trust In Business

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is highly important to be all the time excellently informed about your business and the developments of your industry. Based on Hill´s research (2011, 73) without the continuous “pursuit of knowledge” one may be unable to be sustainably successful in business. The internal factors for being successful in business mentioned in this chapter represent traits and characteristics that an individual may need to have in order to succeed in any business undertaking. Most of the information about these internal success factors was provided by a research of Napoleon Hill (2011) who was analyzing five hundred business men in various different industries over twenty five years. Further interpretation of these mentioned success factors will be done in…show more content…
Huang (2006) argued that trust in business is required on a daily basis. The research reveals that trust is involved in various customer or supplier transactions. In this paper the following definition of trust will be used and applied: Rotter (1967, 655) defined trust in the following way: “Trust is a general expectancy an individual holds that the word of another individual can be relied upon.” Based on this definition one may associate trust with reliability, expectation and belief in another party. Research by Dr. Duane C. Tway, Jr (2012) suggests that without the element of trust a business cannot achieve long lasting and sustainable success. According to this research it is a key element in business to build up trust among clients, suppliers and managers/employees. Without any trust a business does not seem to be able to succeed in business transactions. The most important and vital trust relationship seems to be the relationship with the customers or clients. Once this trust relationship is lost a company may be in greater troubles than one may think. Tway (2012) developed a model of trust consisting of three interconnected…show more content…
Trust needs to grow over time and is rarely built over night. For example the first mentioned pillar refers to how much a customer or also a supplier can trust a company. This principle of trust may not only be related to a company-wide level but also when it comes to interpersonal relations and interactions. The second pillar is “the perception of competence”. How much somebody can be trusted might depend highly on the past and present actions. Particularly nowadays the media reports any negative action of companies rapidly which encourages companies to carefully decide about the next step. The last and third pillar in Tway´s model is the “perception of intentions." Trust is not only related to one´s actions but also to one´s words and future intentions. Lyman (2003) observed in his research that in order to gain the highly valuable trust one´s words, intentions and actions need to be in alignment with each other. According to Lyman (2003) if one does not properly understand the relation between words, actions and intentions it will be extremely difficult to build the necessary trust which may be required in order to have sustainable success in business. Lyman mentions that trust in general is a very tricky issue as one needs to be extremely consistent in order to create it. Once trust is lost it seems to be almost impossible to create it again

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