The Effect of Inter-personal Trust on Opportunism and Business Performance of Gem Dealers in Sri Lanka
This study attempts to explore the effect of interpersonal-trust on opportunism and business performance of gem dealers in Sri Lanka. Therefore, the study suggests three major hypothesis which was tested on primary data gathered from 100 registered gem dealers in the Ratnapura district in Sri Lanka, using structured questionnaires. The results demonstrate that inter-personal trust i.e. credibility, benevolence, ability among gem dealers have a significant negative impact on opportunism and positive significant impact on business improvements. Whereas highlighting the inverse relationship between business opportunism and performance. Furthermore, this study concludes that inter-personal trust has greater impacts on the well-being of this industry highlighting it as the main relational attribute among gem dealers interactions. Thus, inter-personal trust lowers their transaction costs in exchanges and increase the profit levels of gem dealers in Sri Lanka.