The role of turst in Outsourced IS Dev' Project (Sabherwal, 1999, CACM)

Characterizing Trust

1. The cases I studied revealed four types of trust: calculus-based, knowledge-based, identification-based, and performance-based.

2. Calculus-based trust is rooted in the rewards and punishments associated with a particular project. Client executives trust and cooperate with the vendor, expecting structural controls and penalty clauses to minimize opportunistic behavior. Calculus-based trust is also facilitated through the client’s recognition of the vendor’s desire to contract future projects

3. Knowledge-based trust depends on the two parties knowing each other well. knowledge-based trust may be facilitated through a “courtship” [8], whereby the participants seek to know each other well before starting the project.

4. Identification-based trust follows from the two parties identifying with each other’s goals. Strong identification-based trust implies “the parties effectively understand and appreciate the other’s wants; this mutual understanding is developed to the point that each can effectively act for the other” [8]

5. Identification-based trust in OISD projects may be developed through the shared goal (system success) and through early team-building efforts.

6. performance-based trust depends on a project’s early successes. Accomplishing project goals seemed to improve cooperation and trust, whereas performance problems can cause conflict and distrust.