Cultural influences on early trust development in virtual teams

PurposeTransference-based trust (TBT) via referral sources is a cognitive process where trust in third-party information about an individual transfers to trust in the individual. TBT via referral sources can have significant effects on early trust development in a virtual team (VT). This study aims to examine the potential influence of Hofstede's (1980) cultural variables and two proposed combinations of these cultural variables on early trust development in VT, including the effects of referral source.Design/methodology/approachThis study adopted multigroup analysis partial least squares structural modeling to examine potential cultural differences in the responses of 357 university students from 51 different countries to understand early trust development in VT.FindingsTBT via referral sources as in interpersonal construct has a positive, direct impact on early trust development. TBT mediated the individual and organizational model constructs. There were significant differences in the high/low values of 3 of the 56 tested cultural dimensions.Research limitations/implicationsReaffirmed the validity of cognitive-based trust models in understanding early trust development in VTs TBT as an interpersonal construct and has a significant influence on early trust development in VTs. TBT via referral sources mediated the individual and organizational constructs of the model. There were significant differences in the high/low measures of three cultural dimensions (i.e. IV, M and the combination of IV-M-LT) in the relationship of early trusting beliefs to early trusting intensions.Practical implicationsTo positively influence interpersonal and organizational aspects of trust development, managers should ensure that the early phases of VTs, before actual implementation begins, are well organized. Managers could make VT members fully aware of how referral sources can influence early trust development. Managers could encourage individuals to have open access to relevant social media accounts for other VT members and encourage individuals to research referral sources on other VTs members. The implication for managers of culturally diverse VT is that the development of early trust is largely by individual choice, rather than differences in national culture.Social implicationsPeople need to maintain and actively manage their online presence, ensuring that online information about them is accurate and updated. Referral sources could help VT members learn about one another, which might in turn help foster early trust in their online teams.Originality/valueAlthough some studies have found significant cultural differences in early trust development, other studies, including a meta-analysis of 43 studies, found no significant cultural differences in early trust development. This study confirmed the results of the meta-analysis.