HOW INTERPERSONAL TRUST CAN CHANGE: THE EFFECTS OF INTERPERSONAL EVENTS ON THE MAGNITUDE AND PERMANENCE OF CHANGES IN INTERPERSONAL TRUST

Abstract

Interpersonal trust is dynamic and can be easily changed. Understanding why and how changes in interpersonal trust occur is important because trust affects a wide range of organizational outcomes. Because employees’ attitudes and behaviors in the workplace are apt to change in response to notable events, this dissertation examines what, why, and how events cause changes in trust. More specifically, I first define negative [positive] trust-related events as events that either negatively [positively] disconfirm trustors’ prior expectation or events that confirm trustors’ prior negative [positive] expectation towards trustees, and argue that negative [positive] trust-related events can lead to decreases [increases] in trust. Moreover, building on dual-system theory (Morgeson, Mitchell, & Liu, 2015), affect infusion theory (Forgas, 1994, 1995), and the integrative model of trust (Mayer, Davis, & Schoorman, 1995), I propose that trust-related events trigger changes in trust through both changes in emotional reactions and cognitive assessments of trustees’ trustworthiness. Next, drawing from Monge’s (1990) typology of dynamic processes and event-system theory, I focus on two specific components of changes (i.e., magnitude and permanence) and propose that the effects of events on each component are contingent on the characteristics of the events (e.g., criticality, proximity, and timing). I examine all hypotheses using a trust game-based experimental study (Study 1) and a five-wave longitudinal field study (Study 2). The results of Study 1 suggest that positive trust-related events trigger increases in trust, while negative trust-related events trigger decreases in trust. Both effects are mediated through changes in emotions and trustworthiness evaluations. Further, event confirmation affects the magnitude of changes in trust transmitted through changes in trustworthiness evaluations. Specifically, changes in trust are larger when the events are considered as more disconfirming, unexpected, or surprising. Study 2 partially replicates the findings of Study 1 regarding the effects of positive events, such that trust increases in response to positive events through increases in trustworthiness evaluations. However, Study 2 fails to find support for the impact of negative events, nor the moderating roles of event confirmation or event criticality on the magnitude of change. Study 2 also extends to examine the permanence of changes in trust after trust-related events. The results suggest that the positive influence diminishes over the observed three weeks, and the trends are similar regardless of event criticality, proximity, or timing. This dissertation provides important implications to managers and organizations on how to prevent potential decreases in trust and how to enhance trust. Limitations and future directions are also discussed.