Abstract
This paper investigates whether a two-phase management strategy—investing in trust before demanding performance—can outperform static policies, and under what cultural conditions this approach succeeds or fails. We develop an agent-based model inspired by the Ising framework to formalize the Care-Dare dilemma in organizational trust dynamics: agents in a well-mixed population interact through trust-building “Care” actions and growth-demanding “Dare” actions, with behavioral tendencies updated via an action-feedback update rule. Unlike the standard Ising model, agents adapt their behavioral tendencies based on the care and dare actions they receive from others, reflecting the social constraint that individuals observe behavior but not latent dispositions. We systematically compare static policies, trust-based dynamic strategies, and fixed-timing controls under individualistic (J = 0) and collectivistic (J = 10) cultural contexts (n = 30 replications per condition). Three principal findings emerge. First, the two-phase Care→Dare structure is the primary driver of performance gains: switching from Care-emphasis to strong Dare intervention (H = −0.5) at 40%–50% of the simulation horizon yields 27%–35% higher cumulative performance than the best static policy (Welch p -4
), with performance peaking at this ratio and declining sharply for longer Care phases. Second, trust-based switching provides a state-dependent heuristic that, while switching earlier than optimal (∼20% of the horizon vs. the optimal 40%–50%), still outperforms the best static policy by approximately 25% (300,278 ± 1,511 vs. 239,487 ± 831; Welch p -34
) and safely avoids the catastrophic late-switching regime—demonstrating practical value through robustness rather than optimality. Third, cultural conformity creates a sharp regime crossover in a narrow window, J ∈ (1.25, 1.5): moderate conformity (J = 0.5–1.0) amplifies the two-phase strategy’s advantage by 14%, while stronger conformity (J ≥ 1.5) catastrophically reverses it, trapping the organization in an irreversible low-performance state. We connect these findings to the Emotional Bank Account metaphor and discuss implications for management in individualistic and collectivistic organizational cultures.