The Dynamics of Trust: Path Dependence in Interpersonal Trust

Abstract

Interpersonal trust is a critical factor in the success and effectiveness of organizations, influencing information sharing, decision-making, task distribution, and overall team performance. However, trust levels within organizations often exhibit a bimodal distribution, with some relationships characterized by high trust and others by low trust. This study seeks to understand the factors and dynamics contributing to this bimodal distribution and explore how leaders can positively influence the development of trust in their organizations. Using an abductive approach to theory development, we map artifacts from the interpersonal trust literature using DSRP to identify essential components for constructing a system dynamics model. Our analysis of the resultant model explores the dynamics of various interpersonal scenarios commonly encountered within professional organizations. We find that the initial assessment of trustworthiness plays an important role in the development of interpersonal trust and provides a leverage point for the resulting dynamics. The objective of this study is to provide leaders with a deeper understanding of interpersonal trust development, equipping them with the knowledge to effectively foster trust and positively impact their organizations.