Trust, power and control in trans-organizational relations

This paper analyzes trust and power as means of co-ordinating trans-organizational relationships. It is argued that, depending on the institutional environment, there are two distinct patterns of controlling relationships, where trust and power are interrelated in quite different ways. First, both mechanisms are generated at the inter-personal level and either trust or power dominates the relationship. Second, power occurs at the level of the structural framework of relationships and is highly conducive to developing trust between individual organizations. Thus, specific forms of trust and power are identified and the institutional environment is viewed as playing a crucial role in shaping the quality of trans-organizational relations. The theoretical background of the paper mainly draws on conceptual ideas of Systems Theory, Structuration Theory and New Institutionalism.