Why do we place our trust in difficult people?

In professional settings, trust is foundational for collaboration and productivity. We all know people we find difficult to deal with – but some we trust despite major past transgressions, while others we do not. What explains the difference?

In a recent study, CREI member Dr Na Zou – in collaboration with Professor Sonja Opper from Bocconi University – examined this question by focusing on the social structure around the relationships between trustors and trustees.

Based on a stratified random sample of 384 Chinese CEOs in the Yangtze Delta region, this study shows the importance of network structure in shaping trust towards difficult contacts.

Findings

The research found that social embeddedness can provide vital information. Managers are more likely to trust 'difficult' individuals if these people are well-embedded in their social networks. Shared third-party connections provide balanced perspectives, mitigating the damage from conflicts.

In addition to this, managers embedded in closed networks have limited exposure to diverse viewpoints. They are also less prepared to consider alternative views and arguments: information inconsistent with their own experiences will be filtered out.

In contrast, those in open networks are more likely to accept different views. This reinforces the positive association between information received through shared ties and boosts trust in the difficult contact.

Practical implications for managers and organisations

Understanding is important

Understanding the structural dynamics of networks can help manage work conflicts. In particular, using shared ties as mediators is a sensible approach to rebuilding trust. In cases of alleged transgressions, team managers may bring together the accuser, the difficult contact, and shared contacts together to a discussion table for conflict resolution.

Set boundaries

Since highly embedded difficult contacts remain trusted, managers should ensure that the trust rebuild mechanisms do not inadvertently signal tolerance for unacceptable behaviour. While leveraging shared ties for mediation, managers must also set clear boundaries and consequences to avoid repeated transgressions.

For more on the research, listen to this 10-minute podcast generated by Google Notebook LLM.