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In this essay, we address the intersection of trust and modularity in organization design. We argue that, while advanced digital technologies favor more modular organizational arrangements, contemporary trust scholarship has largely failed to adopt the network-based approach that is necessary to understand relationships in such settings. Addressing this void, the article introduces a framework that differentiates between and elaborates on within- and between-module trust dynamics. Our argument offers insights into the challenges and opportunities presented by modular designs, particularly regarding the concerns they raise surrounding trust pluralism and organizational coherence. The discussion extends to practical implications for organizational designers, suggesting strategies for navigating trust in modular organizations. We also point to recursive effects of trust on the emergence of modular structures. By advancing theoretical discussions on modularity and trust, our work serves as a foundation for future theoretical and empirical research aimed at refining the strategies organizations can employ to leverage modularity while fostering a trustworthy environment.
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How Organizational is Interorganizational Trust?
Trust represents a key social mechanism facilitating collaboration in interorganizational relationships. Yet, the concept of interorganizational trust is surrounded by substantial ambiguity, especially as it pertains to the levels of analysis at which it is located. Some scholars maintain that trust is an inherently individual-level phenomenon, whereas others insist that organizations constitute the central sources and referents of trust in interorganizational relationships. Our article addresses this controversy, aiming to reduce conceptual ambiguity and foster cumulative progress. Using a micro-sociological approach, we advance knowledge of the meaning and context-specific relevance of individual- vs. organizational-level trust. Specifically, we apply the notion of organizational actorhood to both the trustor and the trustee in an interorganizational relationship. We then build on micro-institutional and entitativity theory to offer a model of the antecedents of organizational actorhood that identifies a set of contextual conditions explaining the degree to which an organization rather than individuals within it constitutes the focal origin and target of trust. The contingent account we propose here helps bridge disparate traditions of scholarship on interorganizational trust by highlighting that trust can, but need not always, reside to a substantial extent at a supraindividual level of analysis.
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- Award ID(s):
- 1943688
- PAR ID:
- 10516118
- Publisher / Repository:
- Academy of Management
- Date Published:
- Journal Name:
- Academy of Management Review
- ISSN:
- 0363-7425
- Format(s):
- Medium: X
- Sponsoring Org:
- National Science Foundation
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- Free Publicly Accessible Full Text
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Accepted Manuscript1.0
- Journal Article:
- https://doi.org/10.5465/amr.2022.0040
