Alba Graduate Business School, The American College of Greece, Greece
This conceptual paper builds on prior research to theorize the process through which organizations increase or decrease their ability to produce outcomes that stakeholders see as evidence that they are worthy of trust. We propose a process model which theorizes the role of organizational routines and dynamic capabilities in conjunctively shaping an organization’s capacity for trustworthiness (CFT). Our model advances understanding of the dynamic processes through which organizations may become more or less trustworthy over time toward stakeholders. We also provide insights about how, in the absence of dynamic capabilities, organizations can over-attend to some stakeholders and violate the trust of others. We discuss the implications of our theorizing for managing and repairing organizational trust.
