1. TRUST, WEAK TIES AND
INNOVATION
Andrew Maxwell Ph.D.
May 19th, 2014

2. • Increasingly sourced from, and
shared with, weak ties1
• Managed through informal relation-
ships and incomplete contracts2
• Requires new approach to managing
relationship risk3
Innovation
We discuss how to enable organizations to catalyze innovation by
changing how they manage relationships from reducing risk
through controls to managing risk through trust

3.  10:15 Introductions
 10:25 Linking trust, weak ties and innovation
 10:45 Individual reflection
 11:00 Review of online exercise
 11:05 Examples
 11:10 Group report back
 11:30 Feedback and discussion
 11:55 Wrap up and next steps
 12:00 Lunch
Agenda

4.  Close working relationships
 Frequent communication
 Co-ordinated management
 Aligned objectives
 Overlapping knowledge / experience
Strong ties are the traditional source of
innovative ideas and idea validation
Strong Ties are characterized by:

5.  Informal relationships
 Infrequent communication
 Limited co-ordination of objectives
 Complementary knowledge and experience
 Increasingly recognized as the source of new
knowledge
As a consequence, weak ties are becoming an
increasingly important source of innovation
Weak Ties are characterized by:

6.  Is a willingness to be vulnerable to the actions of
another party, without any direct means of
controlling their behaviors
 It contrasts with contracts (controls) that specify:
 outcome expectations and what each party will do
 how performance measured, and consequences
 Facilitates managing incomplete contracts
 Reduces transaction costs
 Encourages multiple simultaneous relationships
 Accelerates knowledge exchange and actions
Trust

7.  Reduces concerns about misappropriation or
misuse arising from knowledge exchange
 Improves knowledge sharing, enabling rapid
identification of relevant opportunities
 Reducing the verification costs associated with
knowledge exchange
 Facilitating higher rates of knowledge absorption,
increasing likelihood of use / resource deployment
 Limits concerns about unanticipated outcomes
Building trust based relationships with
those with whom you have weak ties:

8.  Challenging for organizations to reduce their
reliance on contracts to manage relationship risk
 However, controls may inhibit relationship forming
 Perceived to be risky to rely on trust
 Relies on individual’s ability to assess trustworthiness
 Need to discuss risks of not forming relationships
Transforming organization to rely on
trust, rather controls, is challenging
Trust
Control

9.  Trust develops over time
 Initial trust level based on trust proxy (i.e. background)
 Subsequently trust levels based on behaviors in
development of a dyadic (two way) relationship
 Individuals audit manifestations of trust behaviors
that build, damage or violate trust
 Organizational design and interaction context
influence individual trust behaviors
 Specific trust behaviors stimulate trust responses by
other party that can build or damage trust
Becoming a relationship trust auditor

10. Lewicki and Bunker (1995)
Level of trust changes over time
Knowledge
based trust
Competence
based trust
Identification
based trust

11. Behavioral manifestations that build trust
Dimensions
Trustworthy
Consistency Displays of behavior that confirm previous promises
Benevolence Exhibits concern about well-being of others
Alignment Actions confirms shared values and/or objectives
Dimensions
Trustworthy
Consistency Displays of behavior that confirm previous promises
Benevolence Exhibits concern about well-being of others
Alignment Actions confirms shared values and/or objectives
Capability
Competence Displays relevant technical and/or business ability
Experience Demonstrates relevant work/training experience
Judgment Confirms ability to make accurate and objective decisions
Dimensions
Trustworthy
Consistency Displays of behavior that confirm previous promises
Benevolence Exhibits concern about well-being of others
Alignment Actions confirms shared values and/or objectives
Capability
Competence Displays relevant technical and/or business ability
Experience Demonstrates relevant work/training experience
Judgment Confirms ability to make accurate and objective decisions
Trusting
Disclosure Shows vulnerability by sharing confidential information
Reliance Willingness to be vulnerable through task delegation
Receptiveness Demonstrates ‘coachability’ and willingness to change
Dimensions
Trustworthy
Consistency Displays of behavior that confirm previous promises
Benevolence Exhibits concern about well-being of others
Alignment Actions confirms shared values and/or objectives
Capability
Competence Displays relevant technical and/or business ability
Experience Demonstrates relevant work/training experience
Judgment Confirms ability to make accurate and objective decisions
Trusting
Disclosure Shows vulnerability by sharing confidential information
Reliance Willingness to be vulnerable through task delegation
Receptiveness Demonstrates ‘coachability’ and willingness to change
Communication
Accuracy Provides truthful and timely information
Explanation Explains details & consequence of information provided
Openness Open to new ideas or new ways of doing things

12. Trust Mistrust
Suspicion Distrust
Intentalignswithbenevolence
Action don’t meet expectations
Trust damaging
Trustviolating
Trust, building, damaging & violating

13.  10:15 Introductions
 10:25 Linking trust, weak ties and innovation
 10:45 Individual reflection
 11:00 Review of online exercise
 11:05 Examples
 11:10 Group discussion
 11:30 Feedback to workshop and discussion
 11:55 Wrap up and next steps
 12:00 Lunch
Agenda

14. • Identify trust behaviors manifest by weak
ties – that have built or damaged trust
1
• Rank these behaviors – from building trust
to damaging trust2
• In groups, discuss key behaviors and
discuss the impact of organizational design3
• Present insights to the workshop, to help
identify organizational implications4
Workshop activities
Exercise1/2as individuals, exercise3/4as groups

15. Manifestations
Build Trust Damage Trust Violate TrustTrustworthy
Consistency
Displays of behavior that
confirm previous promises
Shows inconsistencies between
words and actions
Fails to keep promises and
agreements
Benevolence
Exhibit concern about well-
being of others
Shows self-interest ahead of
others’ well being
Takes advantage of others when
they are vulnerable
Alignment
Actions confirms shared values
and/or objectives
Exhibits behaviors sometimes
inconsistent with declared values
Demonstrates lack of shared values
and willingness to compromise
Capability
Competence Displays relevant technical
and/or business ability
Shows lack of context specific
ability
Misrepresents ability by claiming to
have non-existent competence
Experience
Evidence of relevant work
and/or training experience
Relies on inappropriate
experience to make decision
Misrepresents experience
Judgment
Confirms ability to make
accurate and informed
decisions
Relies inappropriately on third
parties or erroneous information
Judges others without giving them
the opportunity to explain
Trusting
Disclosure
Shows vulnerability by sharing
confidential information
Shares confidential information
without thinking of
consequences
Shares confidential information
likely to cause damage
Reliance
Shows willingness to be
vulnerable through delegation
Reluctant to delegate, or
introduces controls on
subordinates’ performances
Is unwilling to rely on
representation by others, or
dismisses participation
Receptiveness
Demonstrates ‘coachability’
and willingness to change
Postpones implementation of
new ideas or deflecting
Refutes feedback or blames others
ommunication
Accuracy
Provides truthful and timely
information
Unintentionally misrepresents or
delays information transmission
Deliberately misrepresents or
conceals critical information
Explanation
Explains details and
consequence of information
provided
Ignores request for explanations Dismisses request for explanations
Openness
Open to new ideas or new
ways of doing things
Does not listen or ignores new
ideas
Shuts down or undermines new
ideas
Behavioral Trust Dimensions

16.  How do trust behaviors build, or damage trust
 Online exercise http://padlet.com/american_rob/2dvi1f2uo3
 Reflect on your own experiences (past 6 months),
specifically with weak ties linked to new initiatives
 Were they trust building or damaging?
 Mark scale and provide an example of each behavior
 Think about:
 why these behaviors built or damaged trust
 What you, or your organization, might change
 Bring your insights back to the group
Individual exercise (trust behaviors)

17. Organizational Trust Diagnostic
Trust Dimension: TRUSTWORTHY
Think about the behaviors of those in your organization with whom you have “weak ties”. Place an ‘X’ on
the line to represent where you think their behavior falls on each trust dimension. Provide an example.
DISPLAYS OF BEHAVIORS
THAT BUILD TRUST
DISPLAYS OF BEHAVIORS
THAT DAMAGE TRUST
Confirming previous
promises
Exhibiting concern about
the well-being of others
Demonstrating shared
values and/or objectives
Name:__________________________ Organization:_________________________________ Email:________________________________
CONSISTENCY
BENEVOLENCE
ALIGNMENT
Showing inconsistencies
between words and actions
Demonstrating self-interest
ahead of others’ well-being
Exhibiting behaviours that are
inconsistent with declared values
Would you be willing to be contacted so that we can do further research on this topic? YES/NO Andrew Maxwell
Example:
Example:
Example:
©

18. Organizational Trust Diagnostic
Trust Dimension: CAPABILITY
Think about the behaviors of those in your organization with whom you have “weak ties”. Place an ‘X’ on
the line to represent where you think their behavior falls on each trust dimension. Provide an example.
DISPLAYS OF BEHAVIORS
THAT BUILD TRUST
DISPLAYS OF BEHAVIORS
THAT DAMAGE TRUST
Displaying relevant ability
Providing evidence of
relevant experience
Demonstrating accurate &
well considered decisions
Name:__________________________ Organization:_________________________________ Email:________________________________
COMPETENCE
EXPERIENCE
JUDGMENT
Showing a lack of context-
specific ability
Relying on inappropriate
experience to make decisions
Relying inappropriately on third
parties or erroneous information
Would you be willing to be contacted so that we can do further research on this topic? YES/NO Andrew Maxwell
Example:
Example:
Example:
©

19. Organizational Trust Diagnostic
Trust Dimension: TRUSTING
Think about the behaviors of those in your organization with whom you have “weak ties”. Place an ‘X’ on
the line to represent where you think their behavior falls on each trust dimension. Provide an example.
DISPLAYS OF BEHAVIORS
THAT BUILD TRUST
DISPLAYS OF BEHAVIORS
THAT DAMAGE TRUST
Showing vulnerability by sharing
confidential information
Showing willingness to be
vulnerable through delegating
Demonstrating ‘coachability’
and willingness to change
Name:__________________________ Organization:_________________________________ Email:________________________________
DISCLOSURE
RELIANCE
RECEPTIVENESS
Sharing confidential information
without thinking of consequences
Being reluctant to delegate, or
introducing controls on
subordinates'’ performance
Postponing implementation of new
ideas or deflecting
Would you be willing to be contacted so that we can do further research on this topic? YES/NO Andrew Maxwell
Example:
Example:
Example:
©

20. Organizational Trust Diagnostic
Trust Dimension: COMMUNICATION
Think about the behaviors of those in your organization with whom you have “weak ties”. Place an ‘X’ on
the line to represent where you think their behavior falls on each trust dimension. Provide an example.
DISPLAYS OF BEHAVIORS
THAT BUILD TRUST
DISPLAYS OF BEHAVIORS
THAT DAMAGE TRUST
Providing truthful and
timely information
Explaining details and
consequence of information
provided
Being open to new ideas or
new ways of doing things
Name:__________________________ Organization:_________________________________ Email:________________________________
ACCURACY
EXPLANATION
OPENNESS
Unintentionally misrepresenting
or delaying information
transmission
Ignoring requests for
explanations
Not listening or ignoring new
ideas
Would you be willing to be contacted so that we can do further research on this topic? YES/NO Andrew Maxwell
Example:
Example:
Example:
©

21.  Trust behaviors are influenced by:
 Individual personality, experience and context
 Corporate culture and organizational design
 Organizational design fosters or constrains
manifestations of trust behaviors
 Are there aspects of your organization design that
cause the positive or negative behaviors observed:
 Rewards systems, recruitment, recognition
 Workload prioritization and promotion
 Organization structures, policies and procedures
 Leadership, culture and consequences
 Bring the group reflection back to the workshop
Group exercise

22.  10:15 Introductions
 10:25 Linking trust, weak ties and innovation
 10:45 Individual reflection
 11:00 Review of online exercise
 11:05 Examples
 11:10 Group discussion
 11:30 Feedback to workshop and discussion
 11:55 Wrap up and next steps
 12:00 Lunch
Agenda

23.  Increasing reliance on weak ties requires trust
displaying and trust auditing behaviors
 Trust behaviors similar across different relationships
 Trust behaviors a function of individual and context
 Controls can damage or enable trust
 Good organizational design promotes trust behaviors
 Remove controls that constrain trust behaviors
 Understanding role of trust, how it is manifest, and
organizational implications important steps in
leveraging weak ties to catalyze innovation
Wrap up slide

24.  Andrew Maxwell
 Fox School of Business
 Temple University
 Andrew.maxwell@temple.edu
 416 433 9805

Thank you