Trust and Conflict within Knowledge-Intensive Environments: The Case of Virtual Inter-Organizational Arrangements

Trust and conflict are inherent characteristics of any organizational arrangement and central for knowledge sharing; yet they have received limited attention in the knowledge management literature. In this paper, we undertake an investigation of both trust and conflict within the context of virtual inter-organizational arrangements, which represent linkages for value-laden shared knowledge. The paper proposes that knowledge sharing is positively related to inter-organizational arrangements so long as the parties exhibit a trust type that permits conflict to be heard, considered and resolved. In so doing, the study argues that a dialectical relationship exists between trust and conflict as they have the potential to affect one another and hence magnify the distinct influences each brings to bear on knowledge sharing in inter-organizational arrangements. This paper explores the dynamics of the different forms of trust and conflict within three different models of virtual interorganizational arrangements. The implications of these linkages are discussed and strategies generated. INTRODUCTION Today’s complex, competitive and dynamic business environment necessitates adaptive, flexible and responsive organizations. Accordingly, organizations are often compelled to form alliances with other organizations to survive and prosper. An expected outcome of such inter-organizational arrangements is the increased access to a wider pool of resources and in particular that of knowledge. These knowledge-intensive inter-organizational arrangements have received overwhelming attention in the recent management and organizational literature. Yet often overlooked is the fact that this fertile mechanism for nurturing knowledge sharing and knowledge creation can become sterile and even pathological, when trust between collaborators is lacking and conflict is poorly managed. Whilst trust and conflict are fundamental considerations for effective knowledge-intensive inter-organizational arrangements, in particular those of a virtual nature, both bodies of literature have largely evolved independently of one another. This paper addresses this gap and takes a focus on different forms of virtual interorganizational arrangements. The paper begins with the argument that trust and conflict are both key characteristics of virtual inter-organizational arrangements. It then reviews the literature on conflict and trust and identifies their main types and forms. Following from this,