Explain Knowledge Based Trust

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b) Knowledge based trust: (Husted, 1998) defines, as the ability for predicting the future behaviour of the trustee, based on the actions and performances. It is the trust based on the organisational relationship that are rooted to the similarities between the knowledge and the experience of the parties. The actions of the party that is of knowledge and experience provide the behavioural predictability that will come from the past interaction. It exist when there is certain kind of information and knowledge about something to understand them and be able to predict on their behaviour, which replaces contracts, penalties and other legal arrangements with partner firm. As this trust develops an overtime in functions of experience and knowledge
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