Vanneste, B;
Yoo, O;
(2020)
Performance of Trust-Based Governance.
Journal of Organization Design
, 9
, Article 14. 10.1186/s41469-020-00075-y.
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Abstract
Trust is crucial for the success of interorganizational relationships, yet we lack a clear understanding of when trust-based governance is likely to succeed or fail. This paper explores that topic via a closed-form and a computational analysis of a formal model based on the well-known trust game. We say that trust-based governance performs better in situations where it results in a willingness to be vulnerable with trustworthy others and an unwillingness to be vulnerable with untrustworthy others. We find that trust-based governance performs better in situations in which (a) trustworthy and untrustworthy partners exhibit markedly different behavior (high behavioral risk) or (b) the organization is willing to be vulnerable despite doubts concerning the partner’s trustworthiness (low trust threshold).
| Type: | Article |
|---|---|
| Title: | Performance of Trust-Based Governance |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1186/s41469-020-00075-y |
| Publisher version: | https://doi.org/10.1186/s41469-020-00075-y |
| Language: | English |
| Additional information: | This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article’s Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article’s Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/. |
| Keywords: | Trust-based governance, Trust game, Interorganizational relationships |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science > UCL School of Management |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10097735 |
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