Under a Cloud of Suspicion: Trust, Distrust, and Their Interactive Effect in Interorganizational Contracting

Strategic Management Journal, 33:820-833, 2012

Posted: 22 Jan 2013

See all articles by Brian L. Connelly

Brian L. Connelly

Auburn University

Toyah Miller

Indiana University - Kelley School of Business - Management & Entrepreneurship

Cynthia E. Devers

Michigan State University - Eli Broad College of Business and Eli Broad Graduate School of Management

Date Written: July 1, 2012

Abstract

Although considerable research has examined the role of trust in interorganizational relationship (IOR) contracting, scholars have devoted less attention to how trust and distrust jointly influence this process. We propose and test a model wherein trust, based on partner reliability, is constrained to the IOR exchange context where it develops and does not generalize to other contexts. Distrust, rooted in value incongruence, more readily generalizes across exchange contexts. Results support these predictions. In addition, our analysis shows that trust and distrust combine such that managers decrease their preferences for highly specific focal-context contracts only when in-context trust is high and distrust is low. We discuss how these findings may provide a more nuanced understanding of the relationship between trust-based and contract-based IOR governance.

Keywords: trust, distrust, interorganizational relationships, policy capturing, hierarchical linear modeling

Suggested Citation

Connelly, Brian L. and Miller, Toyah and Devers, Cynthia E., Under a Cloud of Suspicion: Trust, Distrust, and Their Interactive Effect in Interorganizational Contracting (July 1, 2012). Strategic Management Journal, 33:820-833, 2012, Available at SSRN: https://ssrn.com/abstract=2205208

Brian L. Connelly (Contact Author)

Auburn University ( email )

Auburn, AL 36849
United States
344-844-6515 (Phone)

Toyah Miller

Indiana University - Kelley School of Business - Management & Entrepreneurship ( email )

Bloomington, IN 47405
United States

Cynthia E. Devers

Michigan State University - Eli Broad College of Business and Eli Broad Graduate School of Management ( email )

Agriculture Hall
East Lansing, MI 48824-1122
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
362
PlumX Metrics