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The Journal of Applied Behavioral Science
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Role of Trust in Privatization

Transformation of the Electricity Utility in the Gambia

Thomas Hamilton Forster

University of Canterbury

Venkataraman Nilakant

University of Canterbury

This article is based on a qualitative study of the privatization process of an electricity utility in a less developed country—the Gambia. The electricity utility in the Gambia went through three forms of privatization between 1965 and 1999. Each form was characterized by a different governance structure. This article explores the organizational dynamics under the three governance structures using trust as an analytical construct. The authors argue that the dynamics of trust in each governance structure shaped the organizational culture and performance. The findings suggest that organizational factors such as trust generation may be as crucial as economic factors in ensuring the success of deregulation and privatization in less developed countries (LDCs).

Key Words: organizational performance • privatization • trust • uncertainty

The Journal of Applied Behavioral Science, Vol. 41, No. 3, 348-366 (2005)
DOI: 10.1177/0021886305276414
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