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

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 United States construction industry, a context known for its lack of trust, our study offers insights for trust repair.