Working Paper | HBS Working Paper Series | 2011

Risky Trust: How Multi-entity Teams Develop Trust in a High Risk Endeavor

by Faaiza Rashid and Amy C. Edmondson

Abstract

This paper explicates the challenge of risky trust, which we define as trust that exists between parties vulnerable to high economic, legal, or reputational risks at individual or organizational levels. Drawing from analyses of data collected in a grounded case study of a multi-million dollar construction project, we identify dimensions, antecedents, and behavioral consequences of risky trust. Undertaken in the U.S. construction industry, a context known for its lack of trust, our study offers insights for trust repair.

Keywords: Interpersonal Communication; Leadership; Business Processes; Groups and Teams; Risk and Uncertainty; Trust; Construction Industry; United States;

Citation:

Rashid, Faaiza, and Amy C. Edmondson. "Risky Trust: How Multi-entity Teams Develop Trust in a High Risk Endeavor." Harvard Business School Working Paper, No. 11-089, February 2011.