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Measures for Dealing with Competence and Integrity Violations of Interorganizational Trust at the Corporate and Operating Levels of Organizational Hierarchy

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  • Martyna Janowicz‐Panjaitan
  • Rekha Krishnan

Abstract

We examine how partners in an interorganizational relationship can repair violated trust, and if that is impossible, how they can preserve the collaborative relationship. We also consider under what circumstances exit from the relationship is the only viable option. We propose that the effectiveness of legalistic and non‐legalistic measures in response to a trust violation is a function of the hierarchical level at which the violation occurred (corporate vs. operating), the character of the violation (competence vs. integrity), the frequency and severity with which it occurred, the organizational context in which boundary spanners are embedded, and the degree of dependence between the partners. Based on these factors, we explore how the way in which violation of trust is dealt with at one hierarchical level might affect trust at the other level. Our theoretical model reveals that prior findings on trust repair in inter‐personal context may not hold in the interorganizational context.

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  • Martyna Janowicz‐Panjaitan & Rekha Krishnan, 2009. "Measures for Dealing with Competence and Integrity Violations of Interorganizational Trust at the Corporate and Operating Levels of Organizational Hierarchy," Journal of Management Studies, Wiley Blackwell, vol. 46(2), pages 245-268, March.
    • Handle: RePEc:bla:jomstd:v:46:y:2009:i:2:p:245-268
    DOI: 10.1111/j.1467-6486.2008.00798.x
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    5. Tessa Haesevoets & Chris Reinders Folmer & Alain Van Hiel, 2015. "Is Trust for Sale? The Effectiveness of Financial Compensation for Repairing Competence- versus Integrity-Based Trust Violations," PLOS ONE, Public Library of Science, vol. 10(12), pages 1-13, December.
    6. Mohamed Charki & Emmanuel Josserand & Nabila Charki, 2011. "Toward an Ethical Understanding of the Controversial Technology of Online Reverse Auctions," Journal of Business Ethics, Springer, vol. 98(1), pages 17-37, January.
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    9. Linda H. Y. Hsieh & Suzana B. Rodrigues, 2014. "Revisiting the Trustworthiness–Performance–Governance Nexus in International Joint Ventures," Management International Review, Springer, vol. 54(5), pages 675-705, October.
    10. Aaquib Islam & Weizi Li & Kevin Johnson & Priam Lauchande, 2020. "How far has the integrated care come? Applying an asymmetric lens to inter-organisation trust amongst health and social care organisations," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 529-554, June.
    11. Brian L. Connelly & David J. Ketchen Jr, & K. Ashley Gangloff & Christopher L. Shook, 2016. "Investor perceptions of CEO successor selection in the wake of integrity and competence failures: A policy capturing study," Strategic Management Journal, Wiley Blackwell, vol. 37(10), pages 2135-2151, October.
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