Trust-materiality theory of lending: The evolution of non-market lending through relationship trust and object materiality interplays

As I mentioned earlier, lending and borrowing are forms of social exchange that are regulated by reciprocity norms and obligations. However, the literature suggests that the nature of the obligation involved in social exchange remains unspecified. This leads to uncertainty and risk in this form of exchange, particularly when personal possessions are borrowed from friends or family members. There is always the possibility that the item may not be returned or may be returned in a damaged state.

Despite this uncertainty, research shows that it is essential for developing interpersonal trust. Trust is a crucial element in social exchange as it facilitates both market and non-market exchanges. Different types of interpersonal trust may be formed, including calculation-based trust, knowledge-based trust, identification-based predictability, and dependability-based trust.

In addition to trust, the materiality of lending objects is also important in lending and borrowing practices.