Book contents
- Frontmatter
- Contents
- List of figures
- List of tables
- Notes on contributors
- Preface: discovering new territory in public trust in business
- Acknowledgments
- 1 Public trust in business: what’s the problem and why does it matter?
- Part I Trusting the institution of business
- Part II Public trust and business organizations
- 7 Public trust and trust in particular firm–stakeholder interactions: a theoretical model and implications for management
- 8 Creating more trusting and trustworthy organizations: exploring the foundations and benefits of presumptive trust
- 9 Building trust through reputation management
- 10 Can trust flourish where institutionalized distrust reigns?
- 11 Roles of third parties in trust repair: lessons from high-tech alliances for public trust
- 12 The repair of public trust following controllable or uncontrollable organizational failures: a conceptual framework
- 13 Toward a better understanding of public trust in business
- Index
- References
11 - Roles of third parties in trust repair: lessons from high-tech alliances for public trust
Published online by Cambridge University Press: 05 July 2014
Book contents
- Frontmatter
- Contents
- List of figures
- List of tables
- Notes on contributors
- Preface: discovering new territory in public trust in business
- Acknowledgments
- 1 Public trust in business: what’s the problem and why does it matter?
- Part I Trusting the institution of business
- Part II Public trust and business organizations
- 7 Public trust and trust in particular firm–stakeholder interactions: a theoretical model and implications for management
- 8 Creating more trusting and trustworthy organizations: exploring the foundations and benefits of presumptive trust
- 9 Building trust through reputation management
- 10 Can trust flourish where institutionalized distrust reigns?
- 11 Roles of third parties in trust repair: lessons from high-tech alliances for public trust
- 12 The repair of public trust following controllable or uncontrollable organizational failures: a conceptual framework
- 13 Toward a better understanding of public trust in business
- Index
- References
Summary
EXECUTIVE SUMMARY
the situation
The relationship between organizations and their stakeholders has become increasingly problematic due to breaches of trust. This trust problem is at the heart of the recent financial crisis in which individuals and whole societies were shown to be highly dependent on large corporations. For example, banks have control over savings, mortgages, and pensions, while – individually and often even collectively – affected stakeholders have no means of control over these parties.
key questions
What is the role of third parties in trust repair? Given power imbalances, can trust be repaired, and if so, how?
new knowledge
This chapter presents one of the first empirical tests of the role of third parties in trust repair.
Third parties are tasked with repairing damage to trust that results from three disruptive events among partner organization: legal haggling, misuse of power, and cultural distance.
With regard to legal haggling, the process of drawing up a contract and its actual use tend to evoke distrust unless a third party steers it clear from suspicion. Third parties can help eliminate misunderstandings, clarify causes of disappointed expectations, and help negotiate altered conditions. Under the guidance of a third party, legal haggling need not harm trust.
- Type
- Chapter
- Information
- Public Trust in Business , pp. 290 - 325Publisher: Cambridge University PressPrint publication year: 2014
References
, and (1991), Multiple Regression: Testing and Interpreting Interactions. Thousand Oaks CA: Sage.Google Scholar
and (2004), ‘Designing and renegotiating strategic alliance contracts.’ Academy of Management Executive, 18(3), 37–48.Google Scholar
(1998), ‘Trust – conceptual aspects of a complex phenomenon.’ In , and (eds.), Trust within and between Organizations. Oxford: Oxford University Press, 298–322.Google Scholar
(2001), ‘Trust, power, and control in trans-organizational relations.’ Organization Studies, 22(2), 337–365.CrossRefGoogle Scholar
, , and (2008), ‘Trustworthiness, risk, and the transfer of tacit and explicit knowledge between alliance partners.’ Journal of Management Studies, 45(5), 691.CrossRefGoogle Scholar
and (1994), ‘Technology transactions – networks over markets.’ R and D Management, 24(4), 373–386.CrossRefGoogle Scholar
, , and (2008), Breaking out of Distrust: Judges and Administrators in a Court of Law. EGOS. Bergen.Google Scholar
and (1989), ‘Price, authority and trust: from ideal types to plural forms.’ Annual Review of Society, 15, 97–118.CrossRefGoogle Scholar
, , , , and (1997), ‘When trust matters: the moderating effect of outcome favorability.’ Administrative Science Quarterly, 42(3), 558–583.CrossRefGoogle Scholar
, and (1998), ‘Technology brokers in the North American software industry: getting the most out of mismatched dyads.’ International Journal of Technology Management, 16(1–3), 281–290.CrossRefGoogle Scholar
(1992), Structural Holes: The Social Structure of Competition. Cambridge, MA: Harvard University Press.Google Scholar
(1994), ‘Is science a public good?’ Science, Technology and Human Values, 19, 395–424.CrossRefGoogle Scholar
, , and (2004), ‘The externalisation of R and D activities and the growing market of product development services.’ R and D Management, 34(1), 65–75.CrossRefGoogle Scholar
and (1990), ‘Absorptive capacity: a new perspective on learning and innovation.’ Administrative Science Quarterly, 35(1), 128–152.CrossRefGoogle Scholar
and 2001. ‘Trust, control, and risk in strategic alliances: an integrated framework.’ Organization Studies, 22(2), 251–283.CrossRefGoogle Scholar
, and (2008), ‘The institutional arrangements of innovation: antecedents and performance effects of trust in high-tech alliances.’ Industry and Innovation, 15(1), 45–67.CrossRefGoogle Scholar
and (2002), ‘Trust in leadership: meta-analytic findings and implications for research and practice.’ Journal of Applied Psychology, 87(4), 611–628.CrossRefGoogle ScholarPubMed
, , and (2009), ‘Repairing relationships within and between organizations: building a conceptual foundation.’ Academy of Management Review, 34(1), 68–84.CrossRefGoogle Scholar
, and (2003), ‘University technology transfer: do incentives, management, and location matter?’ Journal of Technology Transfer, 28, 17–30.CrossRefGoogle Scholar
, , and (2002), ‘After the ink dries: the interaction of trust and control in US-based international joint ventures.’ Journal of Management Studies, 39(6): 865–886.CrossRefGoogle Scholar
(1995), Trust: The Social Virtues and the Creation of Prosperity. London: Hamish Hamilton.Google Scholar
and (1989), ‘Structures of mediation: a formal approach to brokerage in transaction networks.’ Sociological Methodology, 19, 89–126CrossRefGoogle Scholar
and (2004), ‘A knowledge accessing theory of strategic alliances.’ Journal of Management Studies, 41(1), 61–84.CrossRefGoogle Scholar
(1995), ‘Does familiarity breed trust – the implications of repeated ties for contractual choice in alliances.’ Academy of Management Journal, 38(1), 85–112.Google Scholar
(1998), ‘Firms as knowledge brokers: lessons in pursuing continuous innovation.’ California Management Review, 40(3): 209–+.CrossRefGoogle Scholar
, and (1997), ‘Power and trust: critical factors in the adoption and use of electronic data interchange.’ Organization Science, 8(1), 23–42.CrossRefGoogle Scholar
(2002), ‘The client role in consultancy relations during the appropriation of technological innovations.’ Research Policy, 31(5), 657–671.CrossRefGoogle Scholar
(1995), ‘Trust – the connecting link between organizational theory and philosophical ethics.’ Academy of Management Review, 20(2), 379–403.CrossRefGoogle Scholar
(2006), ‘Intermediation and the role of intermediaries in innovation.’ Research Policy, 35(5), 715–728.CrossRefGoogle Scholar
and (1985), ‘Retrospective reports of strategic-level managers – guidelines for increasing their accuracy.’ Strategic Management Journal, 6(2), 171–180.CrossRefGoogle Scholar
and (2003), ‘Strategic alliances and the evolution of trust across levels.’ In , , and (eds.), International Handbook of Organizational Teamwork and Cooperative Working. New York: Wiley-Blackwell.Google Scholar
, , and (2002), ‘Alliance management as a source of competitive advantage.’ Journal of Management, 28(3), 413–446.CrossRefGoogle Scholar
and (1988), ‘A causal model of linkages among environmental dimensions, macro organizational characteristics, and performance.’ Academy of Management Journal, 31(3), 570–598.Google Scholar
, , and (2005), ‘Trust, contract, and relationship development.’ Organization Studies, 26(6), 813–840.CrossRefGoogle Scholar
, , and (2006), ‘When does trust matter to alliance performance?’ Academy of Management Journal, 49(5), 894–917.CrossRefGoogle Scholar
and (2012), ‘Wall Street vs. main street: firm strategies for defending legitimacy and their impact on different stakeholders.’ Organization Science, 23(1), 47–66.CrossRefGoogle Scholar
, , and (1996), ‘Linking technology and institutions: the innovation community framework.’ Research Policy, 25(1): 91–106.CrossRefGoogle Scholar
(1995), ‘Affect-based and cognition-based trust as foundations for interpersonal cooperation in organizations.’ Academy of Management Journal, 38(1), 24–59.Google Scholar
and (2005), ‘Collaboration and innovation: a review of the effects of mergers, acquisitions and alliances on innovation.’ Technovation, 25(12), 1377–1387.CrossRefGoogle Scholar
(2007), ‘Starting over when the bickering never ends: rebuilding aggregate trust among clustered firms through trust facilitators.’ Academy of Management Review, 32(1), 72–91.CrossRefGoogle Scholar
and (1996), Technology broking activities in Europe – a survey. International Journal of Technology Management, 12(3), 360–367.Google Scholar
(2009), ‘The dynamics of public trust in business – emerging opportunities for leaders: a call to action to overcome the present crisis of trust in business.’ In A. M. Mulcahy (ed.), Society and Business Roundtable Institute for Corporate Ethics (at: ).
and (2007), ‘The importance of diverse collaborative networks for the novelty of product innovation.’ Technovation, 27(6–7), 367–377.CrossRefGoogle Scholar
. (1996), ‘Trust, opportunism, and governance: a process control model.’ Organization Studies, 17(6), 395–424.CrossRefGoogle Scholar
(2002), Trust: Forms, Foundations, Functions, Failures, and Figures. Cheltenham, UK: Edward Elgar.CrossRefGoogle Scholar
(2004), Interfirm Collaboration, Learning, and Networks: An Integrated Approach. London: Routledge.Google Scholar
, , and (1997), ‘Effects of trust and governance on relational risk.’ Academy of Management Journal, 40(2), 308–338.Google Scholar
(2005), ‘Social networks, the Tertius Iungens orientation, and involvement in innovation.’ Administrative Science Quarterly, 50(1), 100–130.CrossRefGoogle Scholar
1993. ‘Strategic alliance structuring – a game-theoretic and transaction cost examination of interfirm cooperation.’ Academy of Management Journal, 36(4), 794–829.Google Scholar
, , , , and (2008), ‘Coming forward: the effects of social and regulatory forces on the voluntary restatement of earnings subsequent to wrongdoing.’ Organization Science, 19(3), 386–403.CrossRefGoogle Scholar
and 1986. ‘Self-reports in organizational research – Problems and prospects.’ Journal of management, 12(4): 531–544.CrossRefGoogle Scholar
and (2002), ‘Do formal contracts and relational governance function as substitutes or complements?’ Strategic Management Journal, 23(8), 707–725.CrossRefGoogle Scholar
, , and (2006), ‘Entrepreneurial alliances as contractual forms.’ Journal of Business Venturing, 21(3), 306–325.CrossRefGoogle Scholar
and (1977), ‘Examination of need–satisfaction models of job attitudes.’ Administrative Science Quarterly, 22(3), 427–456.CrossRefGoogle Scholar
, , , , and (2010), The Necessary Revolution: How Individuals and Organisations Are Working Together to Create a Sustainable World. London and Boston, MA: Nicholas Brealey Publishing.Google Scholar
(1987), ‘The social-control of impersonal trust.’ American Journal of Sociology, 93(3), 623–658.CrossRefGoogle Scholar
, , and (2003), ‘Assessing the impact of organizational practices on the relative productivity of university technology transfer offices: an exploratory study.’ Research Policy, 32(1), 27–48.CrossRefGoogle Scholar
(1950), ‘Individual and society.’ In (ed.), The Sociology of George Simmel. New York: Free Press.Google Scholar
(1995), ‘The role of the science and technology infrastructure in the development and diffusion of industrial automation in Sweden.’ In (ed.), Technological Systems and Economic Performance: The Case of Factory Automation. Dordrecht: Kluwer, 165–210.CrossRefGoogle Scholar
and (2003), ‘Safeguarding investments in asymmetric interorganizational relationships: theory and evidence.’ Academy of Management Journal, 46(1), 46–62.Google Scholar
, , and (2007), ‘Organizations non gratae? The impact of unethical corporate acts on interorganizational networks.’ Organization Science, 18(1), 55–70.CrossRefGoogle Scholar
and (2009), ‘The role of causal attribution dimensions in trust repair.’ Academy of Management Review, 34(1), 85–104.CrossRefGoogle Scholar
(2002), ‘Breaking out of the innovation box.’ Harvard Business Review, 80(8), 77.Google ScholarPubMed
, , and (1998), ‘Does trust matter? Exploring the effects of interorganizational and interpersonal trust on performance.’ Organization Science, 9(2), 141–159.CrossRefGoogle Scholar
(1972), ‘Trust and managerial problem solving.’ Administrative Science Quarterly, 17(2), 229–239.CrossRefGoogle Scholar
(1986), ‘Production of trust: institutional sources of economic structure.’ In and (eds.), Research in Organizational Behavior. Greenwich, CT: JAI Press, 53–112.Google Scholar
- 2
- Cited by