How Do Trust Groups Form In An Organization?

Trust networks constitute an important phenomenon in organizational settings, and such a network can be defined as a"tightly connected clique in an organization where resource flows are kept within the boundaries of the clique."This paper uses two concepts, social exchange and distribution of workload, to explain this phenomenon, and models the dynamic process of exchanges through which workers form trust networks. Social exchange theory argues that whenever a person offers helps to another person, he or she expects the favor to be returned. If this expectation is then fulfilled, the social exchange will continue and cooperation is therefore strengthened. When trust builds among members of a group, members tend to seek help from others within the group, and a trust network forms. The simulation results show that first, it is easy for trust networks to exist when workload is roughly equal to workers'capacity. Second, the variance of workload affects the impact of average workload on the existence of trust networks, such that less variance leads to greater trust and vice versa. Third, when tolerance of betrayal is roughly equal to propensity to trust in social exchanges, it is easy for trust networks to exist. Fourth, the accumulative advantage of social capital stabilizes the groups when the workload is gentle and breaks the group when the workload can just be endured. The article then discusses the implications for research on social process and group formation.