Unpacking the Duality of Control and Trust in Inter‐Organizational Relationships through Action‐Reaction Cycles

Abstract

To ensure cooperation, parties in inter‐organizational relationships (IORs) draw upon both control and trust. Yet, how control–trust dynamics change as IORs evolve remains unclear. This study illuminates the interplay between control–trust dynamics and IOR dynamics by unpacking how control and trust refer to and create one another through action–reaction cycles. We find that conflicting enactments of vulnerability and risk caused by critical incidents lead to tensions between the parties (IOR dynamics) regarding how and when they rely on control and trust. Consequently, coping practices are applied to redefine the controlling and trusting domain and mediate between the multiple and temporal domains to ensure that control and trust refer to and create one another to (re)form positive expectations. The study's main implication is that it makes little sense to study control‐trust dynamics in IORs, like other relational phenomena, in isolation and at a single point in time.

Rethinking Control and Trust Dynamics in and between Organizations

“…Swärd et al (2023) bring a novel perspective, in particular, to Theme 4 (dynamics) through an analysis of the relationship between control‐trust dynamics and interorganizational relationships (IOR) dynamics. With a focus on temporal issues, the authors investigate how control and trust refer to and create one another at specific points in the relationship.…”

“…Swärd et al (2023) also employ a process‐based approach because they see control and trusting behaviours as ‘an emergent property of the moment‐by‐moment interactions between actors and the environment of their action’ (Suchman, 1987, p. 179). They believe that this approach is necessary to understand how parties establish control and trust ‘domains’ which they describe as defined points in time when positive control and trust dualities exist.…”

“…Swärd et al's (2023) article shows how future research can generate important insights into how actors react when critical incidents create relationship asymmetries (Majchrzak et al, 2015). Their perspective highlights the importance of understanding actors’ asymmetric perceptions within interorganizational relationships.…”

“…Such endeavours are illustrated by two papers in the SI. Swärd et al's (2023) explores how control and trust refer to and create one another through action‐reaction cycles in interorganizational relationships. Conflicting enactments of vulnerability and risk lead to tensions between parties, which threaten to distort the relationship.…”

“…This study deepens our understanding of the nature of the interaction between control and trust by investigating managers' extensive repertoire of responses to deal with control-trust dynamics in their interorganizational relationships. Swärd et al (2023) bring a novel perspective, in particular, to Theme 4 (dynamics) through an analysis of the relationship between control-trust dynamics and interorganizational relationships (IOR) dynamics. With a focus on temporal issues, the authors investigate how control and trust refer to and create one another at specific points in the relationship.…”