This paper analyzes how organizations that share similar attributes or have had prior relationships develop mutual trust. Prior research has hypothesized that economic rationality must exist as a starting point when two organizations establish a relationship of trust. However, this model falls short in terms of explaining the process of relationship formation if some type of connection already exists between the two, or if one organization is already familiar with the people, capabilities, and technology of the other organization. In this paper, "connection-based trust" refers to trust formed between organizations that share similar attributes or between organizations that already have some form of prior ties. Norms seem to be one of the contributing factors to building of connection-based trust. This paper attempts to determine whether that is the case. This paper studies the Migakiya (Polishers) Syndicate, a group of small-business operators in Tsubame City, Niigata Prefecture, that share similar geographical and historical backgrounds and operate in the same industrial sector. Members of the group, which was created to jointly win orders, share the same values. However, there also exists strong rivalry among them as they compete in the same industry. Therefore, there is a written code of conduct that serves as a norm for reducing the uncertainty of members. The Migakiya Syndicate example suggests that connection-based trust is built on shared values and norms; thus, here we attempt to determine how shared values and norms relate to "intentions" and "capabilities," which, according to prior research, prescribe trust between organizations. The theory of planned behavior, proposed by Ajzen (1991), is employed for this purpose and to explain building of connection-based trust. We use the theory of planned behavior to help explain how norms affect intentions, which are an element in establishing trust. This in turn enable us to show the process whereby an organization begins to trust another organization.
