The dance of trust in high risk multi-partner collaborations : an exploration of the antecedents of trust in cross-sector R&D projects

This paper explores the dance of trust in cross-sector R&D collaborations, and does so by drawing on a multi-method study (involving qualitative research, case studies and a survey of project leaders) of the Australian Cooperative Research Centre (CRC) Program. R&D collaborations formed under this Program involve two main types of risk, venture or performance-related and relational, and these are problematic given power, information and risk impact asymmetries among the partners. Within the CRCs these risks are addressed through formalisation, employing the “right people”, and through relationship building. Trust (theorised following Sako as a multi-dimensional construct) is central to these processes. Where trust is formed among CRC participants, and is reinforced over repeated interactions, then relational and performance risks cease to become a major concern for CRC managers. In the CRCs, trust is formed and sustained as a multi-level process. Engagement and relationship commitment is achieved at an organizational level, and partner reputation, credible commitments and the institutional context are important factors here. At the project level, trust, in conjunction with a task focus, leads to a positive collaboration experience and this is associated with positive project outcomes. Within CRC projects, capabilities for communication and cross-sector management are important for the formation and maintenance of trust. The paper concludes by discussing the managerial implications of the study’s findings and by identifying areas for further research and conceptual development.