Trust and trust-linked elements in the formation of tourism networks in Brazil and Spain

Abstract

While there is evidence of the positive influence of trust in cooperation development, in situations where trust is unfeasible, trust-linked elements are needed. In this investigation, trust-linked elements are considered to be contracts, supporting institutions (SIs), and reciprocity. This research aims to determine the role of trust and/or trust-linked elements in the formation of tourism business networks of Brazil and Spain. A quantitative study, using structural equation modelling, was carried out on a sample of 307 lodging companies. The results show that trust remains a key element in the composition of both Brazilian and Spanish business networks, although trust alone may not sufficiently explain collaboration in the tourism industry. This strengthens the argument for employing trust-linked elements to promote cooperation. Contracts and SIs substitute trust, whereas reciprocity complements it. SIs, in particular, play a crucial role in fostering cooperation, without requiring trust or incurring transaction costs, which is a less obvious but nonetheless important service. Networks in tourism destinations are often diverse and adaptable, suggesting that cooperation is idiosyncratic and an ongoing, dynamic process. This investigation concludes that decision-making for enhancing networking capabilities must consider various possibilities aligned with the social embeddedness of the companies in the corresponding tourism destination.