Trust in leadership: A multi-level review and integration

Leaders have been argued to play a key role in determining organizational effectiveness across all levels (e.g., individual, team, unit) that exist within organizations. A key component in a leader's ability to be effective within such environments is the degree to which subordinates and co-workers trust him/her. Therefore, it is not surprising that researchers and practitioners alike are interested in identifying the mechanisms through which trust in leadership can be developed as well as those factors which moderate this relationship [e.g., Gillespie, N. A., Mann, L. (2004). Transformational leadership and shared values: The building blocks of trust. Journal of Managerial Psychology, 19, 588–607; Kouzes and Posner, 1995; Roberts, K. H., O'Reilly, C. A. (1974). Failures in upward communication in organizations: Three possible culprits. Academy of Management Journal, 17, 205–215; Whitener, E. M. (1997). The impact of human resource activities on employee trust. Human Resource Management Review, 7, 389–404]. Despite this, research that has addressed the factors that foster trust in leaders and the outcomes of this trust has been disjointed and, as yet, no comprehensive model has been presented to systematically examine these factors. Therefore, the purpose of this article will be to present an integrative model of trust in leadership.     

Examining Public Trust in Risk‐Managing Organizations After a Major Disaster

This research investigates the public's trust in risk‐managing organizations after suffering serious damage from a major disaster. It is natural for public trust to decrease in organizations responsible for mitigating the damage. However, what about trust in organizations that address hazards not directly related to the disaster? Based on the results of surveys conducted by a national institute, the Japanese government concluded, in a White Paper on Science and Technology, that the public's trust in scientists declined overall after the 2011 Tohoku Earthquake. Because scientists play a key role in risk assessment and risk management in most areas, one could predict that trust in risk‐managing organizations overall would decrease after a major disaster. The methodology of that survey, however, had limitations that prevented such conclusions. For this research, two surveys were conducted to measure the public's trust in risk‐managing organizations regarding various hazards, before and after the Tohoku Earthquake (n = 1,192 in 2008 and n = 1,138 in 2012). The results showed that trust decreased in risk‐managing organizations that deal with earthquakes and nuclear accidents, whereas trust levels related to many other hazards, especially in areas not touched by the Tohoku Earthquake, remained steady or even increased. These results reject the assertion that distrust rippled through all risk‐managing organizations. The implications of this research are discussed, with the observation that this result is not necessarily gratifying for risk managers because high trust sometimes reduces public preparedness for disasters.     

SME manager development in virtual learning communities and the role of trust: A conceptual study

Small and medium-sized enterprises (SMEs) are seen as vital to economic development. However, managers in these organizations generally have fewer opportunities for training and development than their counterparts in larger organizations. In this paper, the authors argue the need for development opportunities based around ‘virtual’ learning and develop a conceptual framework. The increasing penetration of broadband technologies offers the opportunity to create learning communities to engage SME managers with peers facing similar challenges. For a meaningful experience to be achieved in a virtual community, the role of the facilitator is established as important; however, an area largely overlooked in prior research into networked learning is that of the role of trust and how facilitators can generate it. In order to develop the framework for this paper, the authors review prior research into trust, learning, facilitation and virtual learning communities – the main aim being the identification of those aspects of the facilitator intervention that are most likely to engender trust and participation. Finally, areas for further research are identified.     

Towards a Framework of Trust Attribution Styles

The issue of trust has attracted considerable business and management inquiry over the last decade, due to its impact on working relationships within and between organizations. Given its importance, it is fundamental for management to be able to foster trust and thus necessary to accurately diagnose the current state of trust in their organization. However, diagnosing trust in real contexts is challenging due to its taboo and tacit nature. Hence, a surreptitious approach to data gathering and analysis may be required to elicit honest accounts from participants about trust. This paper contends that attribution theory can provide the basis for the development of such an analytical framework by enabling researchers to analyse field data about organizational life. The paper presents literature that highlights the appropriateness of attribution style analysis for explaining trust. It presents a taxonomy of trust‐related terms, and proposes a framework of distinct attribution patterns for each term to systematize the diagnosis of trust in situ. The paper concludes with a discussion about the value of the framework for trust research and directions for future work.     

Workplace trust as a mechanism of employee (dis)advantage: The case of employee socioeconomic status

Early work on trust in social science highlighted how the lack of trust between individuals can cause social division, contribute to social stratification, and reduce economic opportunities for people from all social groups. We integrate this work with organizational research on antecedents of trust to generate predictions explaining when and why low employee socioeconomic status (SES) can be a barrier to trust. We discuss how this process can impair the success of both organizations as well as their lower-SES employees. We present a model, and data, suggesting that lower-SES employees will be both more distrusted as well as more distrustful relative to their higher-SES colleagues. This, in turn, locks them out of potentially advantageous social and economic exchanges. Our theory adds precision in detecting when and why lower-SES employees face barriers to success in organizations, as well as provides a blueprint for studying the impact of trust on socially disadvantaged groups in organizations.     

A psychological contract perspective to the link between non-profit organizations' management practices and volunteer sustainability

This study applies the concept of the psychological contract to the relationship between management practices and volunteers. Formalization of the voluntary sector is impacting on volunteers' experiences and may breach the psychological contract from the volunteers' perspective. This mixed method study interviewed 67 volunteers and volunteer coordinators/administrators, and collected mail survey information from 152 volunteer organizations. The transactional management practices of keeping formal records and not paying volunteers out of pocket expenses are negatively associated with volunteer recruitment and retention. Alternatively, publicly recognizing volunteers through a volunteer newsletter supports volunteers' relational expectations and is positively linked to adequate volunteer numbers. Our findings have important implications for the human resource development practices of non-profit organizations in dealing with theirvolunteers: they suggest that the relational expectations of volunteers are animportant aspect of the psychological contract, which could be used by organizations as a framework for developing management practices that fit the volunteer ethos of trust and networks.     

The effects of suppliers’ trust on manufacturers’ innovation capability: an analysis of direct versus indirect relationships

The study offers an alternative explanation for the role of trust in economic exchange, answering the critical research questions of how and under what conditions suppliers’ trust affects manufacturers’ innovation capability. The study adopts a transaction value approach suggesting combining strategy and organisational economic literature to fully investigate the processes through which joint value is generated and developed by interacting partners. Using survey data from a sample of 235 supplier–manufacturer relationships, we find broad support for the model hypotheses. The results confirm the mediating role of asset specificity and knowledge sharing as procedural dimensions in the relation between suppliers’ trust and manufacturers’ innovation capability. However, the direct path between trust and innovation capability was not confirmed. The study provides theoretical and practical implications for firms seeking to translate inter-firm trust into innovation-based competitive advantage.     

THE RIGHT AMOUNT OF TRUST

We investigate the relationship between individual trust and individual economic performance. We find that individual income is hump‐shaped in a measure of intensity of trust beliefs. Our interpretation is that highly trusting individuals tend to assume too much social risk and to be cheated more often, ultimately performing less well than those with a belief close to the mean trustworthiness of the population. However, individuals with overly pessimistic beliefs avoid being cheated, but give up profitable opportunities, therefore underperforming. The cost of either too much or too little trust is comparable to the income lost by forgoing college. Our findings hold in large‐scale international survey data, as well as inside a country with high‐quality institutions, and are also supported by experimental findings. (JEL: A1, A12, D1, O15, Z1)     

Internationalization,Innovation and Institutions: The 3 I's Underpinning the Competitiveness of Emerging Market Firms

The past decade has seen an increase in the extent of research focused on and around emerging market firms (EMFs) and their rising levels of competitiveness in both their home markets and more importantly in the global market place. At the same time, the practitioner-oriented literature has been documenting a growing number of corporate success stories that originate in emerging market economies. We posit that the growing prominence of EMFs is a result of three interrelated phenomena: the fast-paced internationalization of EMFs into both developing and developed market economies; the rapidly increasing extent to which business enterprises in emerging economies are focusing on knowledge-intensive processes and innovation; and the continuous evolution of institutions in these markets, particularly in terms of economic liberalization.     

Institutional Strategies in Emerging Markets

Abstract

We review and integrate a wide range of literature that has examined the strategies by which organizations navigate institutionally diverse settings and capture rents outside of the marketplace. We synthesize this body of research under the umbrella term institutional strategies, which we define as the comprehensive set of plans and actions directed at leveraging and shaping socio-political and cultural institutions to obtain or retain competitive advantage. Our review of institutional strategies is focused on emerging market contexts, settings that are characterized by weak capital market and regulatory infrastructures and fast-paced turbulent change. Under such challenging conditions, strategies aimed at shaping the institutional environment may be especially critical to an organization's performance and long-term survival. Our review reveals that organizations engage in three specific and identifiable sets of institutional strategies, which we term relational, infrastructure-building, and socio-cultural bridging. We conclude by highlighting fruitful avenues for cross-disciplinary dialogue in the hope of promoting future research on emerging markets and defining the next frontier of institutional theory in organizational analysis.     

A global meaning of supply chain social sustainability

Abstract

The purpose of this research is to help reduce tensions in supply chain social sustainability (SCSS) decisions by providing a common global, contextual definition of social sustainability. This exploratory study utilised an inductive structured interview method to capture SCSS concept meanings. Those interviewed are from, have lived, and worked in developed economies, emerging economies and the base of the pyramid (BOP) economies. The results present a new global baseline definition of SCSS to inform theory and practice by finding that SCSS meanings differ not only between the different levels of economic development, but also within the levels as well. Culture, community and whether basic human needs are met all weigh into perspectives of what this concept is and should entail; a broad, contingent definition is most appropriate moving forward for sustainability planning and execution. Further research with stakeholders in more countries and communities is needed to validate our proposal.     

Complex technological capabilities in emerging economy firms: The role of organizational relationships

Formal organizational relationships are important sources for capability building in emerging economy firms eager to move up the value chain. We examine how access to valuable knowledge available to firms via organizational relationships creates learning opportunities necessary for the development of complex technological capabilities. Using a sample of 852 observations of emerging economy firms from the Indian software industry between 1992 and 2000, we find that developing strong domestic intra-organizational relationships, through affiliation with a moderately diversified business group or operating in a related industry, promote more complex technological capabilities. In the case of foreign inter-organizational relationships, we find that greater foreign client contact enhances the complexity of firm technological capabilities. However, accessing knowledge from domestic inter-organizational relationships appears to hinder the development of firm complex technological capabilities. An interesting result from our research was that having greater access to knowledge from foreign intra-organizational relationships, embedded within foreign subsidiaries, did not lead to the development of complex firm technological capabilities. The results of our study highlight that for emerging economy firms wanting to improve their complex technological capabilities, there may be diminishing benefits to learning from and acquiring knowledge available within specific types of formal organizational relationships.     

Organizational cloud service adoption: a scientometric and content-based literature analysis

This paper takes a scientometric research approach and undertakes a categorized literature analysis to provide a comprehensive and systemic overview of the current status of research on cloud services and their adoption by organizations. We review 52 journals and proceedings of the information systems field to identify and systematically categorize 36 articles on the topic. Our content-based analysis shows that the scarce theoretical and empirical work on organizational cloud service adoption has developed and explored factors that directly or indirectly drive organizations to adopt or inhibit them from adopting cloud services from different perspectives and dimensions. We classify these driving and inhibiting determinants based on the technology organization environment framework Tornatzky and Fleischer (The process of technological innovation. Lexington Books, Lexington, 1990) to provide a structured summary. Based on our analysis and recent cloud evolution in practice, we identify five new research areas, including theoretical and practical phenomena describing determinants and consequences of cloud service adoption in organizations: information technology (IT) related public threat appeals, trust in the technology versus trust in the vendor, bring your own cloud, transformation of organizational identity, and intelligent clusters of IT initiatives. For each phenomenon we provide relevant research questions, potential theoretical foundations, and methodologies to guide future research endeavors in this field.     

Repairing and Enhancing Trust: Approaches to Reducing Organizational Trust Deficits

Abstract

Organizational scholars have long touted the myriad benefits of trust for organizational functioning and performance. Recent surveys, however, document pervasive deficits in such trust. This article addresses the important topic of reducing these deficits. Our attack on this problem is two pronged. First, we examine approaches to repairing damaged trust within organizational settings. Specifically, we assess the state of organizational theory and knowledge regarding effective approaches to trust repair after internal or external events have weakened or damaged trust in an organization. We define what is meant by trust repair, review the most common ways that trust is broken, and then explore the three major approaches that have received the most attention in trust‐repair research. We then address the question of how trust, once repaired, can be enhanced and made more durable and stable. Specifically, we examine theory and evidence regarding the antecedent conditions that support the development and maintenance of what we term presumptive trust among organizational members. We conclude the article with some recommendations of fruitful directions for future research.     

Supporting temporary agency workers’ affective commitments: exploring the role of opportunities for competence development

Nowadays, many organizations employ parts of their workforce via employment agencies and, as such, temporary agency workers (TAWs) are important for our economies. Increasingly, research is conducted to explore the relationships among the three parties involved – the TAW, the client organization and employment agency – and how this relationship can be strengthened by HR instruments. This study adds to this stream of literature by studying to what extent TAWs’ affective commitment (AC) towards the client organization and employment agency relates to their expectations and their fulfilled expectations regarding offered opportunities for competence development (OfCD) by both organizations, and by exploring to what extent TAWs regard both employment organizations responsible for offering them OfCD. A cross-sectional survey study was conducted among TAWs in the Netherlands (n = 449), including quantitative and qualitative analyses. All results of this study together revealed that TAWs tend to be focused on the client organization with regard to OfCD. This is the organization to which they feel most affectively committed, that they regard responsible for organizing their OfCD, and where they ask for OfCD. This study indicated that TAWs do not yet profit maximally from the triangular employment relationship, and have a rather traditional view on TAW constructions.     

Public Acceptance of Fully Automated Driving: Effects of Social Trust and Risk/Benefit Perceptions

Automated driving (AD) is one of the most significant technical advances in the transportation industry. Its safety, economic, and environmental benefits cannot be realized if it is not used. To explain, predict, and increase its acceptance, we need to understand how people perceive and why they accept or reject AD technology. Drawing upon the trust heuristic, we tested a psychological model to explain three acceptance measures of fully AD (FAD): general acceptance, willingness to pay (WTP), and behavioral intention (BI). This heuristic suggests that social trust can directly affect acceptance or indirectly affect acceptance through perceived benefits and risks. Using a survey (N = 441), we found that social trust retained a direct effect as well as an indirect effect on all FAD acceptance measures. The indirect effect of social trust was more prominent in forming general acceptance; the direct effect of social trust was more prominent in explaining WTP and BI. Compared to perceived risk, perceived benefit was a stronger predictor of all FAD acceptance measures and also a stronger mediator of the trust–acceptance relationship. Predictive ability of the proposed model for the three acceptance measures was confirmed. We discuss the implications of our results for theory and practice.     

Complements or Substitutes? Culture–Technology Interactions in Healthcare

The U.S. government recommends that hospitals adopt Computerized Provider Order Entry (CPOE) systems to improve the quality problems that plague U.S. hospitals. However, CPOE studies show mixed results. We hypothesize that CPOE effectiveness depends on the prevalence of patient safety culture within a hospital. Using organizational information processing theory, we describe how patient safety culture and CPOE enable healthcare organizations to better process information. Specifically, we posit that CPOE complements some aspects of patient safety culture and substitutes for others. Using ridge regression, we empirically test this proposition using data from 268 hospitals and multiple data sources. Results show that while CPOE complements the patient safety dimensions of handoffs and transitions, feedback and communication about error, and organizational learning, CPOE substitutes for the dimension of management support for safety, in the context of our dependent variable. As organizations work to implement new systems, this research can help decision‐makers understand how culture impacts such initiatives and account for culture when anticipating effects.     

8 Organizations and Management in China

Abstract

China’s economic transition and its integration into the global economy have been widely recognized as among the most important social changes in the past three decades. This transformation has attracted scholarly attention from multiple disciplines, and sociologists have made particularly important contributions to literature emphasizing theories of organizations, organizational change, and management practice. In this article, we present a critical review of the state of sociological literature on organization and management issues in the transition process. We focus on studies that explore how organizations shaped the trajectory of China’s economic transition, how organizations affect important social and economic outcomes during transition, and the unique challenges that managers face in China’s transition context. We conclude with suggestions for resolving central debates and future research directions.     

Returning to the Frontier of Contingency Theory of Organizational and Institutional Designs

Much has been learned, and even more needs to be learned, about designing organizations and institutions. Since the 1960s this research has evolved from contingency to configuration, to complementarity, to complexity and creative theories of organizing. This chapter reviews these evolving theories (better called perspectives) and urges scholars to return to the frontier of organization studies by addressing an important new agenda in designing organizations with promising new research methods.     

The social regulation of corporate social irresponsibility: Reviewing the contribution of corporate reputation

Whilst it is assumed that stakeholders penalize and deter corporate social irresponsibility (CSI), instances of CSI persist. Correspondingly, the literature on social regulation—which describes how non-governmental stakeholders exert their regulatory influence on organizations—remains fragmented. To act as a springboard for future studies, this review examines the contribution of corporate reputation to our understanding of how CSI is socially regulated. Our analysis of a large (n = 448 studies) multidisciplinary body of literature unearths a set of nuanced relationships between CSI and corporate reputation. We synthesize a conceptual framework in order to map the diverse landscape of literature and its contributions. We then highlight important gaps among—as well as between—research streams to present a future research agenda. Accordingly, this review contributes to closing ‘the loop’ between CSI, corporate reputation and social regulation, thereby opening up new pathways for future research.