Edinburgh Napier University

  There is a pronounced paucity of empirically rigorous study that focuses on the impact of trust on small and medium-sized enterprises operating in a developing market context. This article therefore offers a fresh perspective on the simultaneous relationship between trust and distrust by exploring the complex process though which they are developed. Constructed in the assumptions of multidimensionality and the inherent tensions of relationships, the design of this study is interpretive, following an emergent iterative process, where three distinct types of trust, cognitive based trust, affect based trust and calculus-based trust were considered as critical components for successful SME relationships. Conversely, the unpredictable negative behaviour of a trade partner was critical to the development of calculus-based distrust and identification based distrust. The results facilitate a better understanding of the distinct types of trust and distrust that underpin SME relationships in Nigeria and other developing economies, particularly in Africa. This article contributes to the ongoing debate over the two contrary yet complementary opposites, and their ability to provide explanations to economic activity.