Trust, commitment and team working: the paradox of virtual organizations

In this article we take an agent‐centred approach to explore the role of trust and commitment in the virtual organization. The findings of a case study in an international information technology consultancy indicate that multiple relationships arising from the alliance‐based structure require clear commitment to enable the development of trust as a basis for longer‐term partnership. Paradoxically, the perceived low level of commitment from the organization does not engender the high level of trust and commitment required from virtual teams to maximize their performance. However, over time and with extended exchanges, the commitment level and form may evolve, thus necessitating a realignment of existing psychological understanding and trust between the actors. If there is general agreement that an upward shift from short‐term to long‐term commitment is beneficial to all, then the virtual arrangement will continue to be effective.