Gift giving, reciprocity and the creation of trust

ABSTRACT This paper examines the role that gift giving plays in supplier–buyer relations, specifically, the role of gift giving and the creation of inter-organisational trust. Repeated inter-organisational exchanges in a mature industrial district are analysed using Mauss’ theoretical framework of gift giving, receiving and counter giving. Actors in embedded network relationships frequently exchange gifts and favours as part of commercial exchanges. This gift giving is a fundamental part of the exchange relationship. Gift giving is found to be instrumental in creating and maintaining relationships, defining group and individual identity and resolving conflicts, thus contributing to the creation of trust between partners. Mauss’ theory of gift giving elaborates how this practise creates the conditions for reciprocity and induces trust. The originality of our findings lies in the fact that despite the dominant ideology of the purely altruistic gift, field research demonstrates that gifts do play a role in modern economic exchanges and that this ancient deeply rooted social custom should not be simply relegated to families, close friends and Christmas, but contributes to explaining the first step of trust and trust creation in repeated exchanges.