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Explaining the Limited Effectiveness of Legalistic “Remedies” for Trust/Distrust

Author

Listed:
  • Sim B. Sitkin

    (Graduate School of Business, University of Texas at Austin, Austin, Texas 78712)

  • Nancy L. Roth

    (School of Communication, Information, and Library Studies, Rutgers University, New Brunswick, New Jersey 08903)

Abstract

Organizations frequently adopt formal rules, contracts, or other legalistic mechanisms when interpersonal trust is lacking. But recent research has shown such legalistic “remedies” for trust-related problems to be ineffective in restoring trust. To explain this apparent ineffectiveness, this paper outlines a theory that distinguishes two dimensions of trust—task-specific reliability and value congruence—and shows how legalistic mechanisms respond only to reliability concerns, while ignoring value-related concerns. Organizational responses to employees with HIV/AIDS are used as a case illustration that supports the theory's major propositions. The paper concludes with an agenda for future research.

Suggested Citation

  • Sim B. Sitkin & Nancy L. Roth, 1993. "Explaining the Limited Effectiveness of Legalistic “Remedies” for Trust/Distrust," Organization Science, INFORMS, vol. 4(3), pages 367-392, August.
    • Handle: RePEc:inm:ororsc:v:4:y:1993:i:3:p:367-392
    DOI: 10.1287/orsc.4.3.367
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