I know it when I see it: the nature of trust, trustworthiness signals, and strategic trust construction

Purpose Trust has long been viewed as a potential governance mechanism. However, recent research discloses substantive incongruities in trust conceptualization and operationalization – especially in the supply chain buyer/supplier context. The purpose of this paper is to develop an empirically grounded conceptualization of trust and to explore the trust-construction process. Design/methodology/approach The authors used the communications rationality approach to elaborate a three-stage qualitative study of supply chain trust. The authors first monologically examine trust by interviewing managers from over 50 companies (as described). The list of trust behaviors are then dialogically refined through 11 focus studies comprised of over 250 managers into different trust dimensions (as agreed upon). Finally, the authors used two in-depth, dyadic case studies to examine the dynamic trust construction process (as witnessed). Findings The authors find divergence in the way academics define trust and the way companies operationalize trust. Missing in action is the notion of benevolence. In the supply chain setting, managers describe trust as consisting of credibility and relationship commitment. Companies use an iterative approach to signal trustworthiness. However, ambiguity increases the costs and decreases the effectiveness of proactive trust construction as a form of supply chain governance. Originality/value The authors specify and evaluate novel constructs used to signal trustworthiness and document why and how companies struggle to use the signaling process efficiently and effectively. For some, this is an issue of managerial commitment. For others, this represents a lack of understanding of trustworthiness signals and the trust-construction process. Ultimately, the authors develop a more robust conceptualization of inter-organizational trust and present a roadmap for proactive trust construction.