The purpose of this study is to investigate corporate governance which divided in system and operation part through trust mechanism. Trust mechanism models are consist of governance, stakeholder and corporate domains, Trust are conceptualized by two c...
The purpose of this study is to investigate corporate governance which divided in system and operation part through trust mechanism. Trust mechanism models are consist of governance, stakeholder and corporate domains, Trust are conceptualized by two constructs: risk and interdependence. For the trust mechanism, we make four types trust typology: high risk - high interdependence(relational-based trust), high risk - low interdependence(transitional - based trust), low risk - high interdependence(balance - based trust) and low risk - low interdependence(calculus-based trust). We suggest that trust mechanism affect to corporate governance - system and operation part - to reduce corporate governance critical problems and in addition, trust mechanism are not static but dynamic process to desirable path to balance-based trust. system part role is to impact on decision making and operation part role is to reduce organizational control cost.