An Empirical Study on the Role of Interpersonal and Institutional Trust in Organizational Innovativeness

Fatih Semerciöz, Masoodul Hassan, Zelal Aldemir

Abstract


The main purpose of this paper is to explore the effects of the dimensions of organizational trust such as interpersonal trust (coworkers trust and trust in supervisors/leaders), and institutional trust on the dimensions of organizational innovativeness such as product, process, behavioral, and strategic innovativeness in beverages companies serving in Pakistan and Turkey, and banking companies operating in Pakistan. A quantitative research design was employed. Data were collected through survey instrument from 202 participants relating mainly from marketing, R&D and finance & accounting departments of beverages and banking companies. The results indicate that institutional trust is vital for both product and process innovativeness. Moreover, coworkers trust was positively associated to strategic innovativeness. Therefore, the results have confirmed the view of the prior researchers that the root of trust lies in individual relationships is not in opposition to the experience of trust both inside interpersonal relationships and as an institutional phenomenon beyond interpersonal relationships. 


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International Business Research  ISSN 1913-9004 (Print), ISSN 1913-9012 (Online)

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