Repairing and Enhancing Trust: Approaches to Reducing Organizational Trust Deficits

Abstract

Organizational scholars have long touted the myriad benefits of trust for organizational functioning and performance. Recent surveys, however, document pervasive deficits in such trust. This article addresses the important topic of reducing these deficits. Our attack on this problem is two pronged. First, we examine approaches to repairing damaged trust within organizational settings. Specifically, we assess the state of organizational theory and knowledge regarding effective approaches to trust repair after internal or external events have weakened or damaged trust in an organization. We define what is meant by trust repair, review the most common ways that trust is broken, and then explore the three major approaches that have received the most attention in trust‐repair research. We then address the question of how trust, once repaired, can be enhanced and made more durable and stable. Specifically, we examine theory and evidence regarding the antecedent conditions that support the development and maintenance of what we term presumptive trust among organizational members. We conclude the article with some recommendations of fruitful directions for future research.     

The impact of trust on cooperative membership retention,performance, and satisfaction: an exploratory study

This research explores the effect of trust in the relationships among members and between members and the management teams of two agricultural marketing cooperatives (co-ops). Specifically, this research focuses on the impact of trust on co-op members’ performance, satisfaction, and their commitment to remaining a part of the co-ops. We examine trust along two dimensions: cognitive and affective. We argue that cognitive-based trust will be more salient in some contexts while affective-based trust will be more salient in other settings. Findings suggest that in both co-ops, trust among members and trust between members and co-op management are important predictors of group cohesion, which is a measure of the strength of members’ desires to remain in a group (co-op) and their commitment to it. As hypothesized, there are differences in the effects of cognitive and affective trust, depending upon differences in the contexts represented by the two co-ops.     

Consumer trust in B2C e-Commerce and the importance of social presence: experiments in e-Products and e-Services

Reducing social uncertainty—understanding, predicting, and controlling the behavior of other people—is a central motivating force of human behavior. When rules and customs are not sufficient, people rely on trust and familiarity as primary mechanisms to reduce social uncertainty. The relative paucity of regulations and customs on the Internet makes consumer familiarity and trust especially important in the case of e-Commerce. Yet the lack of an interpersonal exchange and the one-time nature of the typical business transaction on the Internet make this kind of consumer trust unique, because trust relates to other people and is nourished through interactions with them.This study validates a four-dimensional scale of trust in the context of e-Products and revalidates it in the context of e-Services. The study then shows the influence of social presence on these dimensions of this trust, especially benevolence, and its ultimate contribution to online purchase intentions.     

Follower reactions to leader trust violations: A grounded theory of violation types,likelihood of recovery,and recovery process

This paper explores how trust is violated and restored in the leader–follower relationship by analyzing rich stories in everyday trust violation situations. The results suggest a dichotomy of how violations affect trust and its propensity for repair. Recoverable violations are common occurrences from which trust can be recovered, although repeated instances of this type can destroy trust beyond recovery. The process of recovery involves leaders first openly discussing the violation(s) and then providing plans to avoid future violations. Conversely, irrecoverable trust violations destroy trust to such a degree that it cannot be restored and followers withdraw from the relationship. The study advances our understanding of trust violations by showing that recoverable violations include violations based on integrity, competence, and benevolence. Additionally, the typology of trust violations in these unique relationships promotes further investigation.     

Navigating the Life Cycle of Trust in Developing Economies: One‐size Solutions Do Not Fit All

Trust is critical to the development and maintenance of collaborative and cohesive relationships in societies, broadly, and in organizations, specifically. At the same time, trust is highly dependent on the social context in which it occurs. Unfortunately, existing research involving trust remains somewhat limited to a particular set of developed economies, providing a window to explore a culture's stage of economic development as a key contextual determinant of trust within organizations. In this article, we review the state of the scholarship on trust and identify those qualities of trust that are common in organizations at similar stages of economic development, referred to as its etic aspects. We then also distinguish those elements of trust that are, to the contrary, culturally specific or emic in nature. We structure our discussion around the “life cycle of trust” (i.e., the creation, maintenance, and postfracture repair of trust) and consider unique factors in its application to developing economies. In doing so, we ground our examination in expository examples through field experience in Haiti. We conclude with the proposal of a framework for future research oriented toward the resolution of remaining theoretical and empirical queries as they relate to trust in developing economies.     

Towards a Framework of Trust Attribution Styles

The issue of trust has attracted considerable business and management inquiry over the last decade, due to its impact on working relationships within and between organizations. Given its importance, it is fundamental for management to be able to foster trust and thus necessary to accurately diagnose the current state of trust in their organization. However, diagnosing trust in real contexts is challenging due to its taboo and tacit nature. Hence, a surreptitious approach to data gathering and analysis may be required to elicit honest accounts from participants about trust. This paper contends that attribution theory can provide the basis for the development of such an analytical framework by enabling researchers to analyse field data about organizational life. The paper presents literature that highlights the appropriateness of attribution style analysis for explaining trust. It presents a taxonomy of trust‐related terms, and proposes a framework of distinct attribution patterns for each term to systematize the diagnosis of trust in situ. The paper concludes with a discussion about the value of the framework for trust research and directions for future work.     

A chain game for distributed trading and negotiation

This position paper introduces a simulation gaming environment for enacting a production network. The environment aims to be an integrative laboratory for investigating supply networks, as well as being a versatile training tool. The primary focus is on food production networks. The environment enables a number of teams of participants, each representing one actor in a food chain, to conduct business together. The teams can have the role of auction, co-operation, wholesaler, factory, retail chain, and retail outlet. Producers and consumers are either enacted or simulated. The game leaders freely determine the products and production methods in each run of the game. The gaming environment takes performance, process and institutional aspects of chains into account. It is particularly suited for investigating issues of sustainability and trust. Currently the gaming environment is under development. The paper presents version 1B. This version can be found at http://www.chaingame.org. It runs on the Web, enabling to model distributed chains.     

Business and legal issues in enterprise collaborations: A German perspective

Virtual and Extended enterprises share a large amount of characteristics. Especially when it comes to the process of their foundation either one is well advised to base itself on a strong network of reliable partners. In this network each of the joining companies that form the Virtual enterprise can concentrate on their core competencies, giving the whole enterprise the chance to be extremely efficient. Bringing together the different partners and managing them is seen as being one of the biggest challenges of the Virtual enterprise. Therefore some partners will have to focus on those managing tasks. It might as well be their responsibility to ensure that no legal conflicts in regard to the foundation, dissolving, production and related topics emerge. This being especially difficult because the efficiency of a Virtual enterprise is strongly dependent on the looseness of its structure. What conflicts can appear in the described environment and how they might be solved is the focus of this article. It will be pointed out that the emergence of Virtual and Extended enterprises should be supported by general terms and conditions. This terms and conditions should be adjustable, offer the chance to establish a legal framework fitting just perfectly to the intended purpose to continuously create, adjust or dissolve Virtual enterprise. As a matter of fact a certain degree of commitment can positively expand the co-operation in a Virtual enterprise which is mainly based on trust.     

Modelling the factors that influence the acceptance of digital technologies in e-government services in the UAE: a PLS-SEM Approach

Abstract

The digital technologies such as Internet play a crucial role in the management of operations of organisations in both public and private sectors. Such technologies support the implementation of effective digital business strategies. By reviewing the extant literature, this paper aims to identify factors that influence the intention to use digital technologies in order to develop a theoretical model which is then tested empirically using the PLS-SEM approach. While many studies have focused solely on the importance of social influence, perceived usefulness, perceived ease of use, awareness, perceived trust in technology, perceived trust in government, perceived cost and perceived risk, this article brings them together to explain their linkage, and quantifies the relationship. This study is the first empirical attempt to explore the factors influence e-government services adoption in the UAE. Most specifically, this article emphasises the role of social influence, perceived ease to use and perceived trust in technology as the important determinants of the intention to digital technology adoption. The paper expands the traditional discussion by incorporating six variables in a model that acts as facilitator or barrier in the intention to use digital technologies. This article helps practitioners to understand of which factors should be given emphasis in enhancing the intention to use digital technologies. The model developed in this paper is not only a response to the need to understand what causes the variation in the intention to use digital technologies from the operation management perspective, it is also a response to practitioner needs to use an appropriate construct to ensure the effective operation and use of the digital technologies in e-government services. The paper will help to identify the key issues surrounding the digital technologies adoption that may lead the successful operations of e-government.     

Trust in leadership: A multi-level review and integration

Leaders have been argued to play a key role in determining organizational effectiveness across all levels (e.g., individual, team, unit) that exist within organizations. A key component in a leader's ability to be effective within such environments is the degree to which subordinates and co-workers trust him/her. Therefore, it is not surprising that researchers and practitioners alike are interested in identifying the mechanisms through which trust in leadership can be developed as well as those factors which moderate this relationship [e.g., Gillespie, N. A., Mann, L. (2004). Transformational leadership and shared values: The building blocks of trust. Journal of Managerial Psychology, 19, 588–607; Kouzes and Posner, 1995; Roberts, K. H., O'Reilly, C. A. (1974). Failures in upward communication in organizations: Three possible culprits. Academy of Management Journal, 17, 205–215; Whitener, E. M. (1997). The impact of human resource activities on employee trust. Human Resource Management Review, 7, 389–404]. Despite this, research that has addressed the factors that foster trust in leaders and the outcomes of this trust has been disjointed and, as yet, no comprehensive model has been presented to systematically examine these factors. Therefore, the purpose of this article will be to present an integrative model of trust in leadership.     

Building interpersonal trust within organizations: a relational signalling perspective

This article develops the foundations for a theory of interpersonal trust-building based on relational signalling theory (RST). RST is based on the assumptions that rationality is bounded through framing, that preferences are partially determined by altruism (through a distinction between foreground and background goals), and that an individual’s action is influenced by the normative context in which he or she operates. The focus is on interpersonal trust in work relations within organizations. Interpersonal trust-building is construed as an interactive process in which both individuals learn about each other’s trustworthiness in different situations. Four conditions for the building of interpersonal trust within organizations are (1) the suspension of all opportunistic behaviour, or the removal of distrust; (2) exchange of positive relational signals; (3) avoiding negative relational signals, i.e., dealing with trouble; and (4) the stimulation of frame resonance, or the introduction of trust-enhancing organizational policies. The proposed theory can explain important characteristics of trust in organizational contexts, such as the interactive nature of trust, the learning required to build trust, the role of psychological mechanisms (such as attributions and perceptions) in decisions to trust, the limits to trust, asymmetries between trust and distrust and the context-dependency of trust.

Trust in Risk Management: A Model‐Based Review of Empirical Research

This review of studies of trust in risk management was designed, in part, to examine the relations between the reviewed research and the consensus model of trust that has recently emerged in other fields of study. The review begins by briefly elaborating the consensus views on the dimensionality and function of trust. It then describes the various models of trust that have been developed in the field of risk management, comparing them with the consensus approach. The findings of previous reviews are outlined, followed by a delineation of the open questions addressed by the present review, the method used, and the results. Finally, the findings of the review are discussed in relation to the important issue of trust asymmetry, the role of trust in risk management, and directions for future research. The consensus model specifies two conceptualizations of trust, each linked to particular types of antecedents. Relational trust, which is called trust in this review, is based on the relations between the trusting person and the other. Calculative trust, which is called confidence, is based on past behavior of the other and/or on constraints on future behavior. Results of this review showed that most studies of trust in risk management, while exploring matters of particular concern to the risk management community, were at least in part consistent with the consensus model. The review concludes by urging greater integration between the concerns of the former and the insights of the latter.     

Examining Public Trust in Risk‐Managing Organizations After a Major Disaster

This research investigates the public's trust in risk‐managing organizations after suffering serious damage from a major disaster. It is natural for public trust to decrease in organizations responsible for mitigating the damage. However, what about trust in organizations that address hazards not directly related to the disaster? Based on the results of surveys conducted by a national institute, the Japanese government concluded, in a White Paper on Science and Technology, that the public's trust in scientists declined overall after the 2011 Tohoku Earthquake. Because scientists play a key role in risk assessment and risk management in most areas, one could predict that trust in risk‐managing organizations overall would decrease after a major disaster. The methodology of that survey, however, had limitations that prevented such conclusions. For this research, two surveys were conducted to measure the public's trust in risk‐managing organizations regarding various hazards, before and after the Tohoku Earthquake (n = 1,192 in 2008 and n = 1,138 in 2012). The results showed that trust decreased in risk‐managing organizations that deal with earthquakes and nuclear accidents, whereas trust levels related to many other hazards, especially in areas not touched by the Tohoku Earthquake, remained steady or even increased. These results reject the assertion that distrust rippled through all risk‐managing organizations. The implications of this research are discussed, with the observation that this result is not necessarily gratifying for risk managers because high trust sometimes reduces public preparedness for disasters.     

Promoting Public Trust in Public Organizations: Explaining the Role of Public Accountability

This paper is aimed at explaining the role of public accountability in promoting public trust in public organizations. Initially a conceptual model was developed. Then, the model was tested empirically in Iran. The result shows that public accountability influences the public trust by improving citizens’ satisfaction. In other words, legal, ethical, financial, functional, and utmost political accountability affect public trust through influencing citizens’ satisfaction. This study also confirms that changes in social trust, citizens’ trust in government, and media will moderate trust in public organizations.

Period batch control: Classic,not outdated

Period Batch Control was developed and first applied during the Second World War. The historic roots are discussed and the principles of this classic production planning approach explained, PBC compared to other production control concepts, and it is demonstrated that it may still be fruitfully applied, especially in combination with cellular manufacturing. It is therefore considered as a classic, but not outdated production planning concept.     

The case for complexity: A look at the relationship between individual and structure from the inside out

Abstract

This paper develops a model of the individual – structure relationship using a predominantly sociological explanation. Adopting the perspective of the individual and grounding the approach in a structurationist framework, a system of person-based and role-based relationships is proposed. The model's implications for the individual are developed from an examination of markets, hierarchies and networks. Main conclusions cross-cut individual, functional and organizational levels: (1) work- and non-work roles need to be intentionally maintained and leveraged as a way to develop individual and organizational complexity; (2) individual discretion is essential to achieving the proper balance between the two kinds of roles; (3) networks provide the greatest potential for role satisfaction; and (4) HRD assumes an instrumental role in establishing and maintaining a culture of trust and in designing and supporting jobs that foster complexity and discretion.     

Perception of Hazards: The Role of Social Trust and Knowledge

Recent research indicates that social trust of those who manage a hazard is strongly correlated to judgments about the hazard's risk and benefits. The present study investigates the more specific question of “For which hazards is this?” It was postulated that when an individual lacks knowledge about a hazard, social trust of authorities managing the hazard determines perceived risks and benefits. On the other hand, when an individual has personal knowledge about a hazard and therefore does not need to rely on managing authorities, social trust is unrelated to judged risks and benefits. Participants (N = 91) assessed risks, benefits, and trust in managing authorities and personal knowledge associated with 25 hazardous technologies and activities. As expected, strong correlations between social trust and judged risks and benefits were observed for hazards about which people did not possess much knowledge. No significant correlations between social trust and judged risks and benefits were found for hazards about which people were knowledgeable. Results suggest that the lay public relies on social trust when making judgments of risks and benefits when personal knowledge about a hazard is lacking. Replicating findings of other studies, the present study also found negative correlations between perceived risks and perceived benefits. When social trust was controlled for, correlations between perceived risks and benefits diminished. Implications of the results for risk management are discussed.     

Reconstruction and Deconstruction of the Foundation of South Australia as a Nineteenth-Century Strategic Planning Process and How it Might Compare with Current Planning Practice

ABSTRACT

This article does three things. It reconstructs the narrative about the foundation of South Australia in the 1830s as a strategic planning process. It then deconstructs that analysis to explore the issues it addresses and the outcomes. Finally, it reviews the South Australian experience to see if there are valid comparisons to be made with current practice and what lessons it might offer in that regard. In doing that it briefly reviews one present methodology of strategic planning most akin to that followed in South Australia, and one strategic planning exercise that could learn from it.     

低聚度决策主体的信任元协同获取与位势演化

现有群体决策共识算法的研究普遍以主体均质化的假设为前提,忽略了低聚度决策信任共识获取的复杂性。针对低聚度决策主体在合作决策中存在的信任基础薄弱、冲突调节能力不足、有效沟通反馈效率低下等问题,解析了低聚度主体信任元的主客观内涵,展现了基于主体交互过程中主客观信任空间相对性下的动态信任融合过程,通过对非连续信任的归集与权重的转化,刻画了主体间信任水平与合作位势的演化特征,在群体研讨共识方法基础上构建了低聚度决策主体的信任元协同获取模型。对比结果表明:改进后模型的信任基础获取速度和共识水平均高于常规群体研讨方法,克服了原模型研究对象特征的模糊化、研讨内容系统性分析缺乏、研讨过程信息反馈不足等问题,有利于在低聚度主体合作决策中建立信任基础、减少分歧冲突、提高交互沟通的有效性,拓展了现有群体决策的一般性前提和研究范围,剖析了决策信任的主客观信任元内涵和伴生转化演化规律,为复杂松散不确定条件下信任共识的动态获取提供了新的解析模式,具有一定的理论和实践意义。     

The effects of suppliers’ trust on manufacturers’ innovation capability: an analysis of direct versus indirect relationships

The study offers an alternative explanation for the role of trust in economic exchange, answering the critical research questions of how and under what conditions suppliers’ trust affects manufacturers’ innovation capability. The study adopts a transaction value approach suggesting combining strategy and organisational economic literature to fully investigate the processes through which joint value is generated and developed by interacting partners. Using survey data from a sample of 235 supplier–manufacturer relationships, we find broad support for the model hypotheses. The results confirm the mediating role of asset specificity and knowledge sharing as procedural dimensions in the relation between suppliers’ trust and manufacturers’ innovation capability. However, the direct path between trust and innovation capability was not confirmed. The study provides theoretical and practical implications for firms seeking to translate inter-firm trust into innovation-based competitive advantage.