Entrepreneurship Theory and Practice 2026

Trust in the Gray: A Qualitative Study of Trust and Repair in Gray Markets

Dean A. Shepherd¹; Vinit Parida^2,3; Jason A. Colquitt¹; Joakim Wincent^4,5

¹ Mendoza College of Business, University of Notre Dame, IN, USA · ² Entrepreneurship and Innovation, Luleà University of Technology, Sweden · ³ School of Management, University of Vaasa, Finland · ⁴ Hanken School of Economics Helsinki Finland · ⁵ University of St.Gallen , Switzerland

Abstract

Although trust is critical for entrepreneurs in all markets, it likely differs in gray markets from that in white or black markets. In this inductive study, we find a coherent configuration of trust mechanisms in a gray market that offers new insights into how entrepreneurs can use their network (i.e., referrals and “lineaging”) and heuristics (i.e., “villageing”) to build trust in new stakeholders when trust formation is challenging and violations are costly. We also offer new insights into the practices for verifying (i.e., impromptu tests and extensive probationary periods) and maintaining (i.e., financial support) trustworthiness, as well as repairing trust.

DOI

10.1177/10422587261470049

Language

en

Sources

openalex crossref

Cite

APA 7 MLA 9 Chicago (author–date) Harvard Elsevier Harvard (JFE, JBF…) The Accounting Review Academy of Management American Marketing Association INFORMS (Management Science) Copy citation Copied ✓