12 Downsides to Trust… Seriously – Week 10 in Twelve Weeks to Trust

Inter-organizational trust research focuses primarily on the definition and measurement of trust, on its benefits and its impact on performance; however, very little research explores its downsides which can be considerable. Here are eleven, based on my literature review of economics, marketing, business strategy and business ethics literature. 1.  The costs of building trust mayContinue reading “12 Downsides to Trust… Seriously – Week 10 in Twelve Weeks to Trust”

How to Build Trust with Formal Governance Mechanisms Part A – Hierarchy, Monitoring & Contracts – Week 6 of Twelve Weeks to Trust

There are two undeniable facts in inter-organizational relations: 1. All inter-organizational relationships are linked by a governance framework. Partners agree on structure (alliance, equity partnership, joint venture, etc.) and negotiate how it will be managed with contracts, hierarchy, reporting mechanisms and specific investments.  “The choice of the form of governance …is the inter-organizational strategy ofContinue reading “How to Build Trust with Formal Governance Mechanisms Part A – Hierarchy, Monitoring & Contracts – Week 6 of Twelve Weeks to Trust”