TRUST ESTABLISHMENT CONCEPT IN BUSINESS RELATIONSHIP: A

LITERATURE ANALYSIS
Fausta Ari Barata
Chairman, Department of Consultant, FAB ENTREPRISES, Indonesia
Dr. H. Ujianto, MS
Professor, Department of Economy, UnTag Surabaya, Indonesia
Dr. Nanis Susanti, MM.
Lecturer, Department of Economy, UnTag Surabaya, Indonesia

Abstract

Business relationships always have risks that must be borne by the parties
involved. The existence of risk is the basis for the necessity of trust to encourage the
business relationships lasts in a long term. Therefore, it is important to to know the
process of establishing trust in business relationships.
The purposes of this study are to: 1) Review and analyze the trust establishing
process in business relationships; 2) Review and analyze the determinants of the
success of establishing trust in business relationships; and 3) Review and analyze the
model of trust establishment in business relationships. The type of this research is
descriptive using a qualitative approach. The research data was obtained using
literature studies and analyzed using three stages of qualitative analysis, namely data
condensation, data presentation, and conclusion drawing.
The results of this study state that trust can be formed through a process consisting of
6 stages, namely: 1) The initial stage; 2) The stage of communication of persuasion
and information mitigation; 3) Exploration stage to shape attitudes, subjective norms,
and trust-based behavior control; 4) Trust establishment stage; 5) Action stage based
on trust; and 6) The stage of establishing long-term trust in business
relationships. The factors that determine the establishment of trust consist
of reputation, good intentions, individual characteristics, specific attributes
of company or parties involved, competency, experience, risk perception, integrity,
openness, kindness, commitment, and honesty. Determination of these factors into
each stage in the process of trust establishment produces a model that can be used to
create trust in a business relationship.
Keywords: Trust, Business Relations, Trust Formation Models
 TRUST ESTABLISHMENT CONCEPT IN BUSINESS RELATIONSHIP: A
LITERATURE ANALYSIS

1. Introduction
Trust is a factor that absolutely necessary to build a business relationship (Spector
and Jones, 2004; Blumberg, 2001; Mentzer and Min, 2000; Klein-Woolthuis,
1999). Trust can make a person or an organization become confident, open minded,
honest, willing to take risks, and feel more comfortable in establishing relationships
with other parties. Trust can also reduce resistance to change. Conversely, mistrust
will cause a person become closed minded, not confident, reluctant to take risks, and
uncomfortable in establishing relationships with other parties. As a result of lack of
trust, productivity weakens, opportunities for development and improvement are
missed, and performance decreases (Mc Knight et al, 1998).
Trust in business relationships is formed when the parties involved understand the
risk factors and require greater guarantees in conducting transactions. The greater the
perceived risk, the greater the opportunity to foster trust (Barata et.al, 2018a; Chalid,
2012). The higher the trust that is established will provide greater possibilities to
make the business relations take place in a long term (Barata et.al , 2018b) .
Trust in business relationships cannot be formed instantly, but through a process that
involves a series of factors and is carried out in certain stages. As far as the literature
review conducted by the author, it is still rare to find previous research that examines
the process of establising trust that can be applied in business relationships in
general. Most previous research are still focused on studying the formation of trust in
a specific context, for example in the relationship between producers and consumers,
such as the study by Papadopoulou et.al. (2001) which examines the process of
establising trust in consumers in online businesses; or even focusing on analysis to
find out the dimensions of trust in business relationships such as the research
conducted by Kazlauskiene & Bartuseviciene (2013).
Based on the explanation above, this study examines 3 problem statements, namely :
1) How is the process of establishing trust in business relationships; 2) What factors
determine the success of establishing trust in business relationships?; and 3) How is
the model for establishing trust in business relationships? In accordance with the the
problem statements, the purpose of this research are to: 1) Review and analyze the
trust establishing process in business relationships; 2) Review and analyze the
determinants of the success of establishing trust in business relationships; and
3) Review and analyze the model of trust establishment in business relationships.
2. Literature Review
2.1. Trust
2.1.1. Definition of Trust
Trust is one of the important fundamental factors that are considered by every party
involved in an interaction that is full of uncertainty and dependence (Esmaili et. Al.,
2011). Trust is defined as the belief that a person's word or promise is true and that
the person will fulfill his obligations in an exchange relationship (Rotter, 1967). Trust
can also be interpreted as the willingness of someone to be sensitive to the actions of
others based on the expectation that other parties will take certain actions to those
who trust them, without depending on their ability to monitor and control
them (Mayer et.al., 1995).
Trust is a mental attitude in the form of willingness to depend on other parties on the
basis of the belief that those other parties has certain values (Nugroho & Hidayat,
2017). As a mental attitude, trust is included in the psychological domain which is a
concern to accept what is based on the expectation of attention or good behavior from
others (Rousseau et. al., 1998).
Trust is a concept that involves at least two or more parties in an interaction. Trust
arises in one or both parties in line with the increasing positive expectations of each
other's behavior. The first party is considered trusting other parties if the first
party has positive expectations of the behavior of the other parties, which can be in
the form of behaviors that keep
promises, commitments, responsibilities, or consistency in behave and acting
(Lewicki & Bunker, 1996).
Based on some notions of trust as described above, it can be concluded that trust is a
mental attitude that refers to the belief in positive behavior from other parties that can
be expected to fulfill the obligations or responsibilities carried out in an interaction.
Interaction in this case can be in the form of interaction in a social context that does
not involve economic elements, nor interaction in the context of business
relationships where financial components have a major role.
2.1.2. Dimension of Trust
According to Mayer et.al. (1995), trust is formed by three main dimensions, namely
ability, kindness, and integrity. The first dimension, namely ability, is a dimension of
trust that refers to the competencies and characteristics of individuals to influence and
authorize in specific areas. This dimension determines the creation of trust through
providing assurance and security in an interaction. The second dimension, namely
kindness, is a dimension of trust that refers to the desire to meet each other's needs
and satisfaction of each party involved in the interaction. This second dimension
makes the trust-based interaction as a process of mutual benefit orientation, where
each party not only strives to achieve its own goals, but also helps other parties to
achieve their goals. The third dimension, namely integrity, is a dimension of
trust that refers to the compatibility between attitudes, statements, and actions. This
dimension shows that the parties involved in the interaction have important aspects
needed to be trusted, such as aspects of fairness, fulfillment, loyalty, honesty,
dependability, and reliability.
Walter et.al. (2003) suggested dimension of trust consisting of honesty, competence,
and virtue. The dimension of honesty relates to the belief that the other party has the
credibility needed to fulfill its responsibilities in accordance with its position in the
interactions that occur. The dimensions of honesty can be realized in various forms,
such as good attitude or clear, directed, and open communication to overcome the
problems at hand. The competency dimension relates to the belief that other parties
have the ability and expertise needed to achieve goals and fulfill common
interests. This dimension can be in the form of achieving the target in accordance
with the agreement or in the form of finding a solution to the problem at hand. The
virtue dimension is related to the belief that the other parties involved in the
interaction underlie their actions with good intentions. This dimension refers to the
expectation that each party involved in the interaction will act fairly and will not take
actions that could harm each other.
2.1.3. Factors Affecting Trust
Trust is not formed directly, but through a continuous process that is influenced by
various factors. Lewicki and Bunker (1996) mentions 4 main factors that influence
trust, namely, personality predesposition, reputation and stereotype, actual
experience, and psychological orientation.
Personality predesposition is related to the tendency of individuals to trust a certain
parties, where the higher the predesposition will form stronger trust. Reputation
and stereotype is a factor that refers to the cause of the emergence of trust because of
the existence of a positive image or reputation that raises hope for
trustworthiness. Actual experience refers to things that are experienced directly by
someone which become the basis of the determination to belief to or not to believe.
Psychological orientation is a factor that become the basis of individuals to build and
maintain social relations. Psychological orientation refers to the suitability of
characteristics to be able to create a strong belief in social interaction (Lewicki &
Bunker, 1996).
2.1.4. Type of Trusts
Lewicki and Bunker (1996) mentions 3 types of trust, namely Calculus-based
trust, Knowladge-based trust, and Identification-based trust. Calculus-based trust is a
type of trust that bases its concept on the relationship between individuals, groups or
institutions, which basically strives to maintain its continuity through giving trust, but
on the other hand there are consequences of giving that trust. If the transactions of
giving trust and receiving rewards in social relations are no longer balanced, then
trust can change. If the trust given is not worth the reward received, then it can turn
into mistrust.
Knowledge-based trust is a type of trust that is formed on the basis of information
held on other parties, which can then be used to predict the behavior of those who are
trusted. One way to get this knowledge is to repeat the interactions or through a long-
term process while always updating the information.
Identification-based trust is a type of trust that bases its concept on interactions
between groups. This type of trust is formed based on the results of the process of
identification of members of a group. If there are fundamental similarities to the
characteristics obtained from identification, it is generally indicated that group
members can be trusted. Similarity aspects of characteristics become the main
reference for the formation of identification-based trust.
2.1.5. Trust Measurement
Trust that is built between interacting parties needs to be maintained. Therefore, it is
important to know the measurement of trust in order to carry out continuous
evaluation and improvement. According to Shaw (1997), trust can be measured using
4 indicators, namely the Exhibiting Trust, Achieving Result, Acting With Integrity,
and Demonstrating Concern.
Exhibiting trust is an indicator that shows the level of trust that already exists. This
indicator includes several items, including: the delegation of
authority; cooperating collaboratively; willingly to take the risk; open minded; free to
express views; existence of learning organization; and the existence of autonomy.
Achieving result is an indicator that explains the level of trust based on performance
in fulfilling responsibilities. This indicator includes several items, namely: setting
clear and ambitious goals; pay attention to the implementation of new
strategies; prepare for the consequences of success and failure; gathers the talented
people; directing goals and appraises the achievements; sharing
information; and apply some strict strategic controls.
Acting with integrity is an indicator that shows consistency between words and
actions. This indicator includes several items, among others: something expressed to
others reflects what is known; words must be in accordance with behavior; consistent
behavior in all situations; and behavior that is always consistent.
Demonstrating Concern is an indicator that explains trust through a form of concern
for other parties. This indicator includes items that consist of: building company’s
vision; shows trust in the abilities of others; build a sense of family and
dialogue; and recognize individual contributions in the organization.
2.2. Trust in Business Relations
Interaction between parties in a business relationship is very dependent on the aspect
of trust which is the foundation for the continuity of the business relationship. Trust
cannot be formed instantly, but through a continuous process that depends on
the orientation and characteristics of each party involved (Fauziah, 2013).
Long-term trust to the business partners can be formed if there is self confidence in
each of the parties involved. If the self-confidence is well developed, it will indirectly
build a relationship of trust with others. Vice versa, if a person does not have self
confidence, then it will reduce his ability to trust and be trusted by others (Fauziah,
2013).
Some basic elements to build trust in a business person are derivatives from several
factors rooted in the element of credibility, namely character and competence. Based
on this, it can be understood that a successful businessman is a person who has
successfully developed his own character and competence. It has been mentioned
previously that a person is influenced by what he sees, talks about, and things that he
does. If some of these things are projected appropriately, then trust will be established
naturally, that is by involving several components of integrity and components of
capability to performs an actions (Saputra, 2010).
Self confidence owned by a business person will develop into trust in business
relationships, both on a small scale and on an organizational scale. Trust in the
organization will be able to boost confidence in the market because of the added
value of a trust network that is able to cut marketing costs. Finally, when trust in the
market develops well, it will form trust in the community, and therefore, trust
will be able to support business activities carried out by entrepreneurs.

3. Research methods
This study uses a descriptive method with a qualitative approach. Descriptive
research is research carried out through a study of scientific data collected using a
series of qualitative data collection methods to gain deep understanding of the focus
of the research (Moleong, 2012). Descriptive research can produce findings that are
broad in nature but are clearly detailed in relation to the core of the problem along
with the factors that influence it (Gulo, 2010). A qualitative approach is a research
approach that analyzes data in the form of a series of languages, not in the form of
numbers, using a theoretical basis and highly dependent on the subjectivity and
analytical skills of researchers in obtaining a thorough understanding of the focus of
research (Creswell, 2014).
This research is in the form of a literature study, therefore, research data is
obtained using documentation techniques by collecting various information from
internet sources, both in the form of relevant scientific journals, concepts and
theoretical exposures from experts, as well as other forms of information that have
relevance with the focus of research.
Analysis of research data was carried out using three stages, namely data
condensation, data presentation, and conclusion drawing. Data condensation is the
stage of analysis carried out by selecting, focusing, simplifying, and or transforming
the entire data obtained. After condensing the data, the next step is presenting data,
namely by organizing and summarizing data to be presented to facilitate the analysis
process to draw conclusions. The last stage is conclusions drawing which are the
results of interpretations of patterns, explanations, and paths that have been described
from the beginning of the study (Miles & Huberman, 2007).

4. Discussion
4.1. The Process of Establishing Trust in Business Relations
Business relationships that occur at various scales, both at individual and
organizational/company scale, which occur at regional, national, and international
levels, always base the interactions on the trust factor. Although each party already
has formal and legal procedures, but the exchange activities will still not be able to be
carried out optimally, and therefore will not be able to achieve their respective goals
without the existence of trust that underlies the interactions carried out (Spector and
Jones, 2004; Blumberg, 2001; Mentzer and Min, 2000; Klein-Woolthuis, 1999) .
As stated by Yousafzai et.al. (2003), trust is a matter that cannot be created directly,
but must be pursued through a continuous process. Theoretically, trust can be formed
through a process with 4 stages, namely: 1) The initial stage, which is the formation
of expectations based on characteristics; 2) The stage of belief that comes from the
belief in reliability and integrity; 3) Stage of action in the form of willingness from
one party to receive the impact or result of activities carried out by another party; and
4) The loyalty stage that is formed as a result of evaluating the actions taken and the
suitability between the results and expectations (Yee & Yeung, 2002; Huff, 2000;
Adler, 2001; Singh & Sirdesmukh, 2000).
According to research conducted by Bagdoniene & Jakstaite (2009) which based
on the theory of relationship marketing, trust in the context of a business relationship
is formed through a process consisting of four stages, namely: 1) Preliminary stage
before the business relationship occured; 2) Exploration stage; 3) Development
phase; and 4) Stable stage. The first stage, namely the stage before the establishment
of business relations includes information seeking activities and alternative
analysis. At this stage, reputation factors have a dominant influence in establishing
trust in addition to other factors such as cultural, social and technological factors.
Information obtained become the basis of analysis to produce estimates or predictions
of behavior to make a decision, that is to believe or not to believe.
The second stage, namely the exploration phase, is the advanced stage after the
determination of one choice and business relationship has been established. Activities
included in this stage are intended to determine competency and suitability of results
in order to meet the needs or interests of the parties concerned. The dominant factors
affecting the process at this stage are ability, skill, good intentions, and performance.
The third stage, namely the development stage, includes the efforts of each side to
improve business relations in accordance with the level of trust that increases. This
stage is the beginning of the establishment of a long-term business relationship plan
based on the results of cooperation in overcoming problems encountered during
business processes. Each party involved in a business relationship strives to provide
extra effort to be able to create a long-term trust.
The fourth stage is the stage where business relations have been running stably
because it is based on trust that continues in a sustainable manner. Even though it has
been stable, it does not mean that there are no obstacles faced, which have the
potential to reduce trust. Therefore, collaboration from each of the parties involved in
the business relationship is needed to keep trust at the highest level, for example by
maintaining commitment, upholding integrity, or by always basing business
relationships with good intentions.
According to research conducted by Heyns & Rothmann (2015), trust in business
relationships is formed through 4 stages, namely: 1) Stage of the tendency to
believe; 2) Stage of the formation of trust; 3) Stage of risk taking in business
relationships; and 4) Evaluation stage based on results. The first stage explains that
each party has a tendency to give trust to other parties based on personal
preferences. Means, trust can be formed by referring to the characteristics of
individuals without any influence from external factors. These characteristics form
the basis for creating a tendency to believe, which if added to the influence of
external factors such as ability, kindness, and integrity from other parties, it will form
a trust.
The second stage is the stage where trust in business relationships has been formed as
a result of the influence of external factors as mentioned above. These external
factors create perceived trustworthiness, where parties who have the ability, kindness,
and integrity are considered as trustworthy parties. This trust further encourages each
party to make extra efforts to be able to build business relationships, namely by
making decisions to carry out risky actions. This is the third stage in the process of
forming business relationships.
The fourth stage is evaluation based on results. Trust is basically the intention to take
risk-based actions in a business relationship. Therefore, the results of trust in business
relationships are in the form of concrete actions to take risks and willingness to make
improvements to increase trust in order to create long-term business relationships.
According to research conducted by Papadopoulou et.al. (2001) with reference to the
theory of relationship marketing, trust in business relationships is formed through a
process with 4 stages, namely 1) the initial expectation stage; 2) Stage of intention to
believe; 3) Stage of trust behavior; and 4) Long-term trust stage.
The initial expectation stage is the stage where one party evaluates the factors that
give rise to the perception that the other party has potential to be trusted. In this case,
the party that will provide trust still does not really know whether the party that will
be trusted really has the elements to be trusted, such as competence, honesty, or
kindness.
The second stage, namely the intention to believe stage, is the stage after the initial
interaction in the business relationship that allows persuasive communication to
encourage the emergence of intention to believe. At this stage, the party who wants to
be trusted delivers a promise and hopes that the other party will believe in the
promise. The third stage, namely the stage of believing behavior, is the stage that is
formed because the promises delivered in the previous stage are fulfilled. Thus, at this
stage, one party knows that the other party can fulfill its promise. Trust formed at this
stage needs to be maintained in a consistent way to fulfill promises in other
transactions to be able to create trust that lasts in the long term, which is the last step
in the process of forming trust in business relationships.
According to research conducted by Barata et.al. (2018) which refers to
the Elaboration Likelihood Model (ELM), Heuristic Systematic Model (HSM) and
the Theory of Planned Behavior (TPB), the process of establishing trust in business
relationships through the stages which consist of information retrieval; the stage of
communication of persuasion and information mitigation; the stage of forming
attitudes, subjective norms, and behavioral control; stage of formation of
intention; stage of action based on trust; and stage of forming long-term oriented
trust. These stages are formulated based on the integration between the 3 main
theories and data obtained from the object of research.
The summary of the above research findings regarding the process of forming trust in
the business relations can be seen in the table below:
Table 1 . The Process of Establishing Trust in Business Relations
Number of
Source Basic theory Stages in the Process
Stages
Yee & Yeung - 4 1. The initial stage is the
 Number of
Source Basic theory Stages in the Process
Stages
( 2002); Huff formation of expectations
( 2000 );Adler based on characteristics;
( 2001 ); Singh 2. The confidence stage comes
& Sirdesmukh from the belief in reliability
(2000 ) and integrity;
3. The stage of action is in the
form of willingness from one
party to accept the impact or
result of activities carried out
by another party;
4. The loyalty stage is formed as
a result of evaluating the
actions taken and the
suitability between the results
and expectations
1. Stage before business
Theory of relationship
Bagdoniene &
Relationship 4 2. Exploration phase;
Jakstaite (2009)
Marketing 3. Development stage;
4. Stable stage
1. Stage tendency to believe;
2. Stage of formation of trust;
Heyns &
3. Policy on risk taking in
Rothmann - 4
business relationships;
(2015),
4. Evaluation stage based on
results
1. Initial hope stage;
Theory of
Papadopoulou 2. Stage of intention to believe;
Relationship 4
et.al.(2001) 3. Stage of trust behavior;
Marketing
4. Long-term trust stage
Elaboration 1. Information seeking stage ;
Likelihood 2. Stage of communication of
Model persuasion and information
(ELM) mitigation;
Barata Heuristic 3. Stage of forming attitudes,
6
et.al. (2018 a) Systematic subjective norms, and
Model behavioral control;
(HSM) 4. Stage of formation of
Theory of intention;
Planned 5. Action stage based on trust;
 Number of
Source Basic theory Stages in the Process
Stages
Behavior 6. The stage of forming long-
(TPB) term oriented beliefs .
Based on the findings of several previous researchers presented in the table above,
the process of forming trust in business relationships can be integrated which consists
of several stages, namely: 1) The initial stage, which occurs before the occurrence of
business relationships, which contains information seeking efforts to form
expectations based on perception of trustworthiness; 2) The stage of communication
of persuasion and information mitigation, which includes efforts to establish an
intention to believe in reliability and integrity; 3) Exploration stage to shape attitudes,
subjective norms, and trust-based behavior control; 4) Stage of the formation of trust,
namely the interest to take risky decisions in order to build business relationships; 5)
Action stage based on trust; and 6) The stage of establishing long-term trust in
business relationships.

4.2. Determinants of the Success of Establishing Trust in Business

Relationships
Business relationships always have risks that must be borne by the parties
involved. These risk will increase inaccordance with the growth of the scale of the
business (Barata et al, 2018a). The existence of risk factors makes parties involved in
business relationships feel insecure and need greater guarantees to maintain existing
business relationships. But on the other hand, the existence of risk will provide an
opportunity for the establishment of trust in business relationships (Chalid, 2012).
Trust is formed through a continuous process that is influenced by various
factors. Theoretically, there are at least 4 factors that influence the formation of trust,
namely predesposition of personality, reputation and stereotype, actual experience,
and psychological orientation (Lewicki and Bunker, 1996). But in practice,
sometimes there are other factors that influence and determine the formation of trust
in a business relationship.
According to the findings of Kazlauskiene & Bartuseviciene (2013), the formation of
trust with business partners is determined by several factors, namely competence,
vision, honesty, reputation, good intentions, openness, tolerance, respect, and
wisdom. Heyns & Rothmann (2015) mentions two other factors that determines the
formation of the trust, that is individual characteristics and perceptions of risk
factor. Bagdoniene & Jakstaite (2009) find out the factors that can influence
perceptions of risk, namely motive factors, attributes of company-specific or parties
involved, competence, honesty, reliability, experience, integrity, and wisdom. Barata
et.al. (2018a) prove 9 factors that determine the formation of trust in business
relationships, namely the owner's background, long-term commitment, owner's
existence, external factor control, economic motive background, communication and
information risk mitigation, communication patterns to maintain trust, trial giving
project, and individual characteristics.
The above factors can be further classified according to the stages in the trust
establishment process presented in the table below:
Table 2. Determinants of Trust
No Stages Defining factor Source
The initial stage, which
Kazlauskiene
occurs before the
Reputation, goodwill, & Bartuseviciene
occurrence of business
individual (2013), Heyns &
relations, which contains
characteristics, specific Rothmann
1 information seeking
attributes of companies or (2015) , Bagdonie
efforts to form
parties involved, namely the ne & Jakstaite
expectations based
owner's background (2009), Barata
on perception of
et.al. (2018a)
trustworthiness
The communication Competency, experience,per
Bagdoniene &
stage of information ception of risk,
Jakstaite
persuasion and motive, vision,
(2009), Barata
mitigation, which transparent communication,
2 et.al. (2018a),
includes efforts to communication and
Kazlauskiene
establish an intention to information risk mitigation,
& Bartuseviciene
believe in reliability and communication patterns to
(2013)
integrity maintain trust
Competency, motives,
Barata
integrity, reliability,
Exploration stage to et.al. (2018a), Kaz
honesty, good faith,
shape attitudes, lauskiene
commitment, openness, trial
3 subjective norms, & Bartuseviciene
giving project, owner's
and trust-based behavior (2013), Bagdonien
existence, economic motive
control e & Jakstaite
background, external factor
(2009 )
control
The stage of trust
building, namely the Papadopoulou
interest to take risky Competence, integrity, et.al. (2001), Heyn
4
decisions in order to kindness, commitment s & Rothmann
build business (2015)
relationships
The action stage, which Heyns &
Motivation, good, honesty,
5 is to realize trust in the Rothmann
competence
form of real decisions (2015), Barata
No Stages Defining factor Source
and actions et.al. (2018a)
Heyns &
Stage of forming long- Integrity, commitment, good
Rothmann
6 term trust in business intentions, honesty, external
(2015), Barata
relationships factor control
et.al. (2018a)

4.3. Model of Trust Establishment in Business Relations

Based on the stages and the determinants of the success of the establishment of trust
in business relationships described above, the model of establishing trust in business
relationships can be described as follows:
 Figure 1 . Model of Establishing Trust in Business Relations
5. Conclusion and Recommendation
5.1. Conclusion
Trust is the main foundation that must be established to be able to create long-term
business relationships. Trust can be formed through a process that consists of 6
stages, namely 1) The initial stage, which occurs before the occurrence of business
relationships, which contains efforts to find information to form expectations based
on perception of trustworthiness ; 2) The stage of communication of persuasion and
information mitigation, which includes efforts to establish an intention to believe in
reliability and integrity; 3) Exploration stage to shape attitudes, subjective norms,
and trust-based behavior control ; 4) Stage of the formation of trust, namely the
interest to take risky decisions in order to build business relationships; 5)
Stage actions based on trust ; and 6) The stage of establishing long-term trust in
business relationships.
Factors Factors that determine the formation of the trust consists of reputation,
goodwill, individual characteristics, specific attributes companies or parties
involved , competence, experience, perception of risk, experience, perception of
risk, integrity , openness , kindness , commitment , and honesty. Determination of
these factors into each stage in the process of forming trust produces a model that can
be used to create trust in a business relationship.
5.2. Theoretical implications
This study develops a model for establishing trust in business relationships based on a
study of literature that has specific relevance. These findings can be used for the
analytical framework of related theories, namely Theory of Relationship
Marketing , Elaboration Likelihood Model (ELM) , Heuristic Systematic Model
(HSM) , and Theory of Planned Behavior (TPB) .
5.3. Managerial Implications
Business people, both on an individual and corporate scale, can try to apply the stages
of trust formation developed in this study to build long-term business-oriented
relationships. Things that need to be considered are related to the determinants of the
formation of trust that must be adjusted to the characteristics of the business and
market competition.
5.4. Suggestion
The findings of this study need to be further examined to find out the results of
applying the model of trust formation in business relations through the
implementation of advanced research that can re-use qualitative methods, but using
primary data in the form of interviews, or using quantitative methods to determine the
correlation between stages in forming trust.

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