Abstract: | This research develops and investigates the concept of reciprocal trust between interacting teams. Reciprocal trust is defined as the trust that results when a party observes the actions of another and reconsiders one's trust‐related attitudes and subsequent behaviors based on those observations. Twenty‐four teams of systems analysis and design students were involved in a 6‐week controlled field study focused on the development of an information systems project. Each team was responsible for both developing a system (development role) and for supervising the development of a system by another team (management role). Risk‐taking actions exhibited by one team in an interacting pair were found to predict the other team's trustworthiness perceptions and subsequent trust. The level of trust formed in turn predicted the team's subsequent risk‐taking behaviors with respect to the other team. This pattern of reciprocal trust repeated itself as the teams continued to interact over the duration of the project, thus supporting our model of reciprocal trust. Findings also indicate that trust and trust formation can occur at the team level. Copyright © 2005 John Wiley & Sons, Ltd. |