Organizational trust as a success factor
Volume 02 Issue 1
Authors
Gabriela Michalec, David Mate Hargitai, Andrea Bencsik
Keywords
organizational trust, impersonal trust, competitiveness, business success, satisfaction, commitment
Citation in APA style
Michalec, G., Hargitai, D. M., & Bencsik, A. (2024). Organizational trust as a success factor. Journal of Business Sectors, 2 (1), 61–67. https://doi.org/10.62222/XQQE2812
DOI
Abstract
Research background:
Modern organizations encounter difficulties as they experience a growing demand for trust, while simultaneously witnessing fewer chances for interpersonal trust to flourish. Consequently, these organizations cannot solely depend on interpersonal trust and must seek additional forms of organizational trust to compensate. The number of publications has been increasing for many years, that’s why it is important to give organizations and researchers a more comprehensive picture of it.
Purpose of the article:
The main aim of our research is to demonstrate that impersonal trust has a positive impact on satisfaction, commitment and, through these, competitiveness. We wanted to prove that in addition to personal trust, we also need to focus on impersonal trust, we need to find a balance between using these two types of trust so organizations can achieve success more effectively.
Methods:
In our research we used PLS-SEM method because our structural model is complex and contains many constructs. The use of the PLS-SEM is also justified by the fact that the normality condition for the established model is not met for each construction. This analysis performs factor analysis and regression calculation simultaneously. We used a quantitative study with a sample of employees from 1572 Hungarian and 660 Slovakian organizations to explore the relationship between impersonal trust and satisfaction, commitment, and competitiveness.
Findings & Value added:
The result is that impersonal trust has a positive impact on the factors we studied, so in addition to numerical ratings such as annual turnover, these soft factors also contribute to business success. All the pathway coefficients, whether direct or indirect, tested in the hypotheses presented, showed significant effects. Consequently, it can be inferred that impersonal trust has a greater impact on job satisfaction than on organizational commitment. In terms of competitiveness, impersonal trust exerts an indirect positive influence through both job satisfaction and organizational commitment. All the three hypotheses were proven. From the viewpoint of employees within Hungarian and Slovakian organizations, a notable correlation exists between impersonal trust and organizational commitment, job satisfaction, and competitiveness, irrespective of the orientation of the organizations.