Swift Trust and Distrust in Strategic Partnering Relationships: Key Considerations of Team-Based Designs

Journal of Business StrategiesVol. 24 Nbr. 2, October 2007

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Summary


We explore the integration of trust and distrust as defined by Lewicki, McAllister, and Bies (1998) with its effects on team-based designs. A hypothetical long-term contract simulation was used to study trust and distrust through a medium-term, qualitative analysis. Results indicate that teams respond differently to trust and distrust perceptions in the development of contracts. Discussion of the Lewicki et al. (1998) model demonstrates that while trust served to loosen formalities between teams and led to higher perceived quality, the presence of distrust led to the development of competition between teams, higher inter-team accountability and lesser perceived quality.

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Swift Trust and Distrust in Strategic Partnering Relationships: Key Considerations of Team-Based Designs

Introduction

Organizations have not only been witness to but active participants in a major phenomena over the past twenty years: the increasing use of teams to develop and implement long-term contracts used in outsourcing organizational work (Adler, 2004; Barthelemy & Adsit, 2003; Benfratello & Sembenelli, 2002; Boswell, 2000; Cohen & Bailey, 1997; Paladino, Bates & da Silveira, 2002; Schilling & Steensma, 2001). An assumption behind outsourcing is that trust improves communication and cooperation between teams in the accomplishment of organizational work (Boon & Holmes, 1991; Dasgupta, 1988; Jeffries & Reed, 2000; Mayer, Davis & Schoorman, 1995).

While it is clear that research has indicated a need for trust in partnering relationships, the study of how trust and distrust affect inter-team based designs is clearly understudied and, thus, underdeveloped. The purpose of this paper is to contribute to our understanding of the effects of trust and distrust perceptions on inter-team processes and outcomes. Using Lewicki, McAllister, and Bies's (1998) model of trust and distrust, we studied groups in a capstone business course to more fully understand how inter-team interactions are affected by the perception of simultaneous trust and distrust.

This paper investigates two fundamental assumptions with regard to trust and distrust. First, we explore the basis for understanding how inter-team relationships are affected by simultaneous trust and distrust. Given the fast-paced nature of today's work environment, the formation of 'swift' trust and distrust implies that teams have to make quick decisions based on interdependence of work between teams. This study also provides a fundamental assessment of how simultaneous...

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