Based on case studies of Canadian universities and education consortia, Pidduck
(2006) claimed that previous mutual experience engenders trust. Reputation, which
according to Pidduck is defined as the perception of quality over time, may not only be
based on the company’s own experiences but may also come from experiences in social
networks and in informal networks. If the supplier’s reputation is perceived as too high
or too low, this may be detrimental for the buying organisation as a too low reputation
may imply a low quality and a too high reputation may lead to the supplier trying to
control the relationship (Pidduck, 2006).