Victim's Approaches to Repairing SMEs Interorganisational Trust in Weak Institutional Environments

Trust building plays a key role in transforming organisations, yet many small and medium enterprises (SMEs) struggle to develop and sustain trust due to limited resources and expertise. This challenge is particularly pronounced when it comes to repairing trust after violations, which can threaten the very survival of these enterprises. This article examines the approaches victims take to repair interorganisational trust in weak institutional environments. Using embeddedness theory, the study explores how trust relations are shaped by institutional contexts and social networks. Based on empirical data from 24 cases of internationally trading Ghanaian SMEs, the research develops a model illustrating how entrepreneurs and smaller businesses initiate trust repair following violations. The findings reveal that in weak institutional contexts, SMEs are more proactive in initiating and repairing trust compared to the perpetrators of trust violations. This study significantly contributes to the literature on trust repair by providing a deeper understanding of these processes in developing economies.