Trust and control interrelations: New perspectives on the trust control nexus

This article is the post-print version of the published article that may be accessed at the link below. Copyright @ 2007 Sage Publications.This article introduces the special issue on New Perspectives on the Trust-Control Nexus in Organizational Relations. Trust and control are interlinked processes commonly seen as key to reach effectiveness in inter- and intraorganizational relations. The relation between trust and control is, however, a complex one, and research into this relation has given rise to various and contradictory interpretations of how trust and control relate. A well-known discussion is directed at whether trust and control are better conceived as substitutes, or as complementary mechanisms of governance. The articles in this special issue bring the discussion on the relationship between both concepts a step further by identifying common factors, distinctive mechanisms, and key implications relevant for theory building and empirical research. By studying trust and control through different perspectives and at different levels of analysis, the articles provide new theoretical insights and empirical evidence on the foundations of the trust-control interrelations

On the Evolution of Trust, Distrust, and Formal Coordination and Control in Interorganizational Relationships: Towards an Integrative Framework

In this article, we discuss the evolution of trust, distrust, and formal coordination and control in interorganizational relationships. We suggest that the degrees to which managers trust and distrust their partners during initial stages of cooperation leave strong imprints on the development of these relationships in later stages of collaboration. This derives from the impact of trust and distrust on: (1) formal coordination and control; (2) interorganizational performance; and (3) the interpretations that managers attribute to the behavior of their partners. Collectively, our arguments give rise to a conceptual framework, which indicates that there is a high propensity for interorganizational relationships to develop along vicious or virtuous cycles. By integrating and reconciling previous work on the trust-control nexus, and by emphasizing the dynamics associated with it, the article contributes to a more comprehensive and refined understanding of the evolution of interorganizational cooperation.evolution;trust;distrust;formal coordination;interorganizational relationship;formal control

Cultural influences and the mediating role of socio-cultural integration processes on the performance of cross-border mergers and acquisitions

This article has been made available through the Brunel Open Access Publishing Fund.This paper reports findings from a longitudinal case study (2005–2011) of a merger between an Austrian and a German energy provider. I develop a model of socio-cultural integration processes based on an analysis of critical incidents expressed in 71 problem-centred interviews and observations with acquired and acquiring employees at four different points of time: immediately before the takeover and during the first negotiation talks, and one, three and six years after the takeover. The findings suggest that the relationship between national and organizational cultural differences and M&A outcomes is mediated by socio-cultural integration processes defined in terms of the formation of interpersonal relationships, trust and shared identity. Based on these findings I formulate specific propositions and build an evidence-based model of M&A socio-cultural integration processes that guides future research and practice

Cooperative Or Controlling? The Effects Of Ceo-Board Relations And The Content Of Interlocks On The Formation Of Joint Ventures

This study examines the influence of the social network of board interlocks on strategic alliance formation. Our theoretical framework suggests how board interlock ties to other firms can increase or decrease the likelihood of alliance formation, depending on the content of relationships between CEOs (chief executive officers) and outside directors. Results suggest that CEO-board relationships characterized by independent board control reduce the likelihood of alliance formation by prompting distrust between corporate leaders, while CEO-board cooperation in strategic decision making appears to promote alliance formation by enhancing trust. The findings also show how the effects of direct interlock ties are amplified further by third-party network ties.Business Administratio

A normal paranoia? The emergence of distrust between parents of autistic children and public officials

This paper explores the development of distrust and paranoia among parents and carers of autistic children in their interactions with public officials charged with such children’s diagnosis, education and care. The suspicion and distrust framework of Fein and Hilton (1994), and Kramer’s typology of organisational paranoia (1998, 2001) are used to show how distrust impacts on client experiences. Antecedents of distrust are identified, and the ‘normalcy’ of paranoia in this context is demonstrated. These findings should permit public sector staff dealing with parents and carers of autistic children to address such perceptions and build trust where little seems to exist

Trust and Formal Control in interorganizational Relationships

There is a tendency to see trust and control by formal agreements as substitutes. According to transaction cost economics trust is unreliable, and some form of control is needed to reduce hazards of opportunism. According to others, high trust allows for a limited extent of formal control. Formal control signals distrust and thereby evokes reciprocal distrust and formal control. This paper studies all combinations of high/low trust and high/low formal control in four longitudinal case studies. We find that trust and formal control are at least as much complements as they are substitutes. We find that like trust contracts can be both the basis and the outcome of relations.governance;inter-organizational relations;trust;contract

Why the epistemologies of trust researchers matter

In this thought piece we take stock of and evaluate the nature of knowledge production in the field of trust research by examining the epistemologies of 167 leading trust scholars, who responded to a short survey. Following a brief review of major epistemological perspectives we discuss the nature of the prevalent views and their geographical distribution within our field. We call on trust researchers to engage in epistemological reflection, develop their own awareness of alternative epistemologies, and ensure their work draws on and cites relevant research contrary to their preferred epistemological approach. To support this we ask editors of relevant journals to foster pluralism in trust research, publishing work from a range of epistemologies

Relational quality: A dynamic framework for assessing the role of trust in strategic alliances

The organizational literature has always posited that «trust» plays a key role in economic exchanges, particularly when one or another party is subject to the risk of opportunistic behaviour, incomplete monitoring, or when moral hazard problems arise. These conditions are almost always present in the case of alliances and joint ventures between independent parties. This paper explores the concept of «relational quality» in one such inter-organizational form ­dyadic alliances­ where past experience and the shadow of the future play an important role. Relational quality is important, as it affects the extent to which partners substitute reliance on trust for more formal control mechanisms. Building on theory, case studies and survey data, we develop a framework for thinking about trust in dynamic and practical terms. We define three elements affecting relational quality in alliances: the initial conditions surrounding the exchange, the cumulative experiences of the parties with each other's behaviours as they interact, and the impact that external events have on perceptions of behaviour and attitudes of the parties about each other's trustworthiness. We use data on a sample of alliances with one Spanish partner to explore the relative impact of these elements and develop a more precise set of propositions from this framework. The paper should guide further work towards quantifying the role of trust as a control mechanism in the performance of strategic alliances.Alliances; economic exchanges; joint ventures;

Relational quality: Managing trust in corporate alliances

The management literature has often argued that "trust" plays a key role in economic exchanges, particularly when one or another party is subject to the risk of opportunistic behaviour and incomplete monitoring, or when problems due to moral hazard or asymmetric information arise. These conditions are almost always present in the case of corporate alliances and joint ventures. We propose that one aspect of trust, what we call "relational quality", is fundamental to the maintenance of good working conditions in two-party alliances where past experience and the shadow of the future play important roles. Relying on a growing body of theory and a number of case studies, we develop a framework for thinking about trust in dynamic and practical terms. We conclude that a reservoir of relational quality exists in any such relationship, and that the level of trust implied in such a reservoir will not only influence whether and how future conflicts are resolved, but also is itself affected by the positive (or negative) resolution of such conflicts. Finally, we identify three elements that contribute to the relational quality reservoir in alliances: 1) the initial conditions surrounding the alliance formation; 2) the cumulative experience of the parties with each others' behaviours as the alliance unfolds; and 3) the impact that external events or behaviours outside the alliance's context have on the perceptions and attitudes the parties have about each other's trustworthiness. We conclude with some recommendations for more effective management of corporate alliances.corporate alliances; economic exchanges; monitoring;