Trust in rural areas

Networking and the collaborative nature of the global economy reinforce tendencies towards geographical clustering of firms in specialist and related industries. This paper discusses cluster and network formation, networking, social capital and social network cohesion. How does trust influence business processes, economic sustainability and business innovation in a regional and rural network context? The paper looks at two Victorian studies, one in the grains industry and one in the tourism industry, and examines the determinants and impact of trust based relations on the success of rural networks, cluster formation and maintenance. It then considers conditions and pathways towards building trust within rural clusters and networks through social cohesion, the exchange of information and knowledge.