Pockets of Trust in a Landscape of Distrust: Interorganisational Trust and the Challenge of Conflicting Institutional Logics

Abstract

This paper examines the development of trust in interorganisational relationships (IORs) that are embedded in conflicting institutional logics. The study focuses on a recently established customer choice system for domestic elderly care that involves a complex constellation of logics for the parties involved in the IORs to handle. We explore how boundary spanners deal with conflicting logics and the impact it has on the development of trust in IORs, including both positive and negative expectations of trustees and the new customer choice system. Using the institutional logics in action theory, we propose a new approach to understanding the role of institutional embeddedness in IORs and provide empirical evidence of how institutional logics influence the development of trust. We introduce the concept of “pocket of trust” to describe the compartmentalised development of trust in an organisational environment otherwise characterised by distrust and control efforts.