When companies collaborate, low trust is detrimental to
innovation. But so is very high trust. The optimal level, yielding
maximum impact, lies in between.
BY FRANCIS BIDAULT AND ALESSIO CASTELLO
Why Too Much Trust Is
Death to Innovation
THE SMART MICROCAR, invented by the tumultuous partnership between Daimler-Benz
AG & Co. and The Swatch Group Ltd., finally seems to be reaping the benefits of its provocative design as more consumers order this compact automobile. By contrast, the minivan codeveloped by
PSA Peugeot Citroën SA and Fiat SPA (initially sold as the Peugeot 806 and the Fiat Ulysse) was the
result of a harmonious relationship but never garnered much attention. It was just another minivan.
These outcomes contradict common sense as well as a large body of academic literature. The
general assumption, after all, is that success grows out of good relationships — based on a common vision, cultural proximity, a sense of fairness and equity and, eventually, mutual trust — while
poor cooperation and lack of trust lead to disaster. Yet examples abound of high-trust partnerships that fail to innovate and of turbulent ones that succeed. Admittedly, many factors influence
the level of creativity and innovativeness of partnerships, and trust is only one of them. But it is
deemed to be a central one. 1
Is trust in fact overrated? Is it sometimes an actual hindrance to innovation? Can we think in
terms of an optimal level of trust — not too little and not too much?
THE LEADING
QUESTION
Can very high
trust between
innovation
project partners be too
much of a
good thing?
FINDINGS
; Some kinds of
conflict between
collaborators can be
good for innovation
performance.
; While personality
conflicts hinder
innovation, conflicting opinions about
tasks can spur new
solutions.
; Trusting partners
are more likely to
commit the resources needed to
implement jointly
developed ideas.
COURTESY OF SMART USA
SUMMER 2010 MIT SLOAN MANAGEMENT REVIEW 33
