Minimal networks: a contribution to the understanding of control in trust-based organizations

Abstract

This article draws on process labor theory and on theories of social control to understand how control is enforced in trust-based organization forms. It argues that like power-based forms need a shadow structure for creating requisite variety, trust-based forms need a shadow structure for requisite homogeneity. That control structure is composed by unobtrusive forms of direct supervision and ideational control which foster integration but also entail negative side effects: they hamper learning, flexibility and adaptability. This generates a self-defeating paradox because trust-based forms are prone to emerge in environments where these three characteristics are essential for survival. Therefore, we propose a different control structure - the minimal network - that hinges on diversity instead of similarity, building up the levels of learning, flexibility and adaptability necessary to survive and prosper in rapid-change of environments.