An Investigation of The Relationship Between Organizational Trust and Loyalty in China's Largest Manufacturing Company
Abstract
Trust is widely regarded as a potent factor in attaining favorable individual and collective results. Prior studies have commonly categorised trust in business organizations into three distinct dimensions: trust in the organization itself, trust in managers, and trust in colleagues. The primary outcome variables that determine organizational trust are employee job satisfaction, organizational commitment, positive organizational behaviour, and high performance levels. Employee trust can foster emotional loyalty, continuous loyalty, and moral loyalty. We contend that trust exerts a significant influence on employee satisfaction, thereby fostering employee loyalty. This study aimed to examine the correlation between organizational trust and employee loyalty by conducting an employee loyalty survey in a prominent Chinese home appliance company. The statistical analysis conducted using SPSS software validated the correlation between organizational trust and employee loyalty, highlighting the significance of organizational trust in fostering employee loyalty particularly in manufacturing industry.
Downloads
References
Al-Dossary, R. N. (2022). The relationship between Nurses' quality of work-life on organizational loyalty and job performance in Saudi Arabian hospitals: a Cross-sectional study. Frontiers in Public Health, 10, 918492. https://doi.org/10.3389/fpubh.2022.918492
Allen, N. J., & Meyer, J. P. (1990). The measurement and antecedents of affective, continuance and normative commitment to the organization. Journal of occupational psychology, 63(1), 1-18. https://doi.org/10.1111/j.2044-8325.1990.tb00506.x
Al-Shalabi, F. S. (2019). The relationship between organizational trust and organizational identification and its effect on organizational loyalty. International Journal of Economics and Business Research, 18(1), 1-30. https://doi.org/10.1504/IJEBR.2019.100646
Alshraideh, A. T. R., Al-Lozi, M., & Alshurideh, M. T. (2017). The impact of training strategy on organizational loyalty via the mediating variables of organizational satisfaction and organizational performance: An empirical study on Jordanian agricultural credit corporation staff. Journal of Social Sciences (COES&RJ-JSS), 6(2), 383-394. https://EconPapers.repec.org/RePEc:jso:coejss:v:6:y:2017:i:2:p:383-394
Arai, K. (1995). Organizational loyalty: A preliminary Study. Hitotsubashi journal of economics, 21-32. https://doi.org/10.15057/7771
Augustine, C. H., Gonzalez, G., Ikemoto, G. S., Russell, J., Zellman, G. L., Constant, L., ... & Dembosky, J. W. (2009). Improving school leadership. Amerika: Rand Education. https://doi.org/10.1787/9789264083509-en
Bettencourt, L. A., Gwinner, K. P., & Meuter, M. L. (2001). A comparison of attitude, personality, and knowledge predictors of service-oriented organizational citizenship behaviors. Journal of applied psychology, 86(1), 29. https://psycnet.apa.org/doi/10.1037/a0015241
Bharadwaj, N., Ballings, M., Naik, P. A., Moore, M., & Arat, M. M. (2022). A new livestream retail analytics framework to assess the sales impact of emotional displays. Journal of Marketing, 86(1), 27-47. https://doi.org/10.1177/00222429211013042
Boss, R. W. (1978). Trust and managerial problem solving revisited. Group & Organization Studies, 3(3), 331-342. https://doi.org/10.1177/105960117800300306
Chin, W. W. (1998). The partial least squares approach to structural equation modeling. In G. A. Marcoulides, Modern methods for business research(pp. 295-336). Lawrence Erlbaum Associates.
Chughtai, A. A., & Buckley, F. (2008). Work engagement and its relationship with state and trait trust: A conceptual analysis. Journal of Behavioral and Applied Management, 10(1), 47-71. https://jbam.scholasticahq.com/article/17170.pdf
Cooil, B., Keiningham, T. L., Aksoy, L., & Hsu, M. (2007). A longitudinal analysis of customer satisfaction and share of wallet: Investigating the moderating effect of customer characteristics. Journal of marketing, 71(1), 67-83. https://doi.org/10.1509/jmkg.71.1.067
Dai, Y., Tang, Y. M., Chen, W., & Hou, J. (2022). How organizational trust impacts organizational citizenship behavior: Organizational identification and employee loyalty as mediators. Frontiers in Psychology, 13, 996962. https://doi.org/10.3389/fpsyg.2022.996962
Dirks, K. T. (2000). Trust in leadership and team performance: evidence from NCAA basketball. Journal of applied psychology, 85(6), 1004. https://doi.org/10.1037/0021-9010.85.6.1004
Dirks, K. T., & Ferrin, D. L. (2002). Trust in leadership: meta-analytic findings and implications for research and practice. Journal of applied psychology, 87(4), 611. https://doi.org/10.1037/0021-9010.87.4.611
Gilbert, J. A., & Tang, T. L. P. (1998). An examination of organizational trust antecedents. Public personnel management, 27(3), 321-338. https://doi.org/10.1177/009102609802700303
Guillon, O., & Cezanne, C. (2014). Employee loyalty and organizational performance: A critical survey. Journal of Organizational Change Management, 27(5), 839-850. https://doi.org/10.1108/JOCM-02-2014-0025
Hoppes, C. R., & Holley, K. A. (2014). Organizational trust in times of challenge: The impact on faculty and administrators. Innovative Higher Education, 39, 201-216. https://doi.org/10.1007/s10755-013-9275-y
Jigjiddorj, S., Tsogbadrakh, T., Choijil, E., & Zanabazar, A. (2019, May). The mediating effect of employee loyalty on the relationship between job satisfaction and organizational performance. In Economics, Management and Technology in Enterprises 2019 (EMT 2019) (pp. 197-202). Atlantis Press. https://doi.org/10.2991/emt-19.2019.37
Kabir, M. N., & Parvin, M. M. (2011). Factors affecting employee job satisfaction of pharmaceutical sector. Australian journal of business and management research, 1(9), 113-123. http://dx.doi.org/10.52283/NSWRCA.AJBMR.20110109A13
Karanika-Murray, M., Duncan, N., Pontes, H. M., & Griffiths, M. D. (2015). Organizational identification, work engagement, and job satisfaction. Journal of Managerial Psychology, 30(8), 1019-1033. https://doi.org/10.1108/JMP-11-2013-0359
Koç, H., & Yazicioğlu, İ. (2011). Yöneticiye duyulan güven ile iş tatmini arasındaki ilişki: kamu ve özel sektör karşılaştırması. Doğuş Üniversitesi Dergisi, 12(1), 46-57. https://doi.org/10.31671/dogus.2019.150
Li, C. H. E. N. (2020). Research on employee loyalty issues and influencing factors in private enterprises-A case study of shengyuan communication (Doctoral dissertation, Doctoral dissertation, SIAM UNIVERSITY). https://e-research.siam.edu/kb/research-on-employee-loyalty-issues/
Long, C. S., Ajagbe, M. A., Nor, K. M., & Suleiman, E. S. (2012). The approaches to increase employees’ loyalty: A review on employees’ turnover models. Australian Journal of Basic and Applied Sciences, 6(10), 282-291. https://core.ac.uk/download/pdf/32226002.pdf
Malhotra, N. K. (1996). Marketing research: An applied orientation. Prentice Hall.
Martensen, A., & Grønholdt, L. (2006). Internal marketing: A study of employee loyalty, its determinants and consequences. Innovative Marketing, 2(4), 92-116. https://hdl.handle.net/10398/3d1f8010-ef23-11db-9160-000ea68e967b
Matzler, K., & Renzl, B. (2006). The relationship between interpersonal trust, employee satisfaction, and employee loyalty. Total quality management and business excellence, 17(10), 1261-1271. https://doi.org/10.1080/14783360600753653
Meyer, J. P., Bobocel, D. R., & Allen, N. J. (1991). Development of organizational commitment during the first year of employment: A longitudinal study of pre-and post-entry influences. Journal of management, 17(4), 717-733. https://doi.org/10.1177/014920639101700406
Mayer, R. C., Davis, J. H., & Schoorman, F. D. (1995). An integrative model of organizational trust. Academy of management review, 20(3), 709-734. https://doi.org/10.5465/amr.1995.9508080335
Min, J., Kim, J., & Yang, K. (2023). CSR attributions and the moderating effect of perceived CSR fit on consumer trust, identification, and loyalty. Journal of Retailing and Consumer Services, 72, 103274. https://doi.org/10.1016/j.jretconser.2023.103274
Morreale, S. P., & Shockley-Zalabak, P. S. (2014). Qualitative Study of Organizational Trust: Leaders' Perceptions in Organizations in Poland and Russia. Intercultural Communication Studies, 23(2). https://www-s3-live.kent.edu/s3fs-root/s3fs-public/file/S-P-Morreale-Shockley-Zalabak.pdf
Mowday, R. T., Steers, R. M., & Porter, L. W. (1979). The measurement of organizational commitment. Journal of vocational behavior, 14(2), 224-247. https://doi.org/10.1016/0001-8791(79)90072-1
Mowday, R. T., Porter, L. W., & Steers, R. M. (2013). Employee—organization linkages: The psychology of commitment, absenteeism, and turnover. Academic press.
O'Reilly, C. A., & Chatman, J. (1986). Organizational commitment and psychological attachment: The effects of compliance, identification, and internalization on prosocial behavior. Journal of applied psychology, 71(3), 492. https://doi.org/10.1037/0021-9010.71.3.492
Paliszkiewicz, J. (2011). Trust Management: Reason, Routine and Reflexivity. In MIC 2011: Managing Sustainability? Proceedings of the 12th International Conference, Portorož, 23–26 November 2011 [Selected Papers] (pp. 113-129). University of Primorska, Faculty of Management Koper.
Pandey, C., & Khare, R. (2012). Impact of job satisfaction and organizational commitment on employee loyalty. International Journal of Social Science & Interdisciplinary Research, 1(8), 26-41. https://www.researchgate.net/publication/320908823
Preko, A., & Adjetey, J. (2013). A study on the concept of employee loyalty and engagement on the performance of sales executives of commercial banks in Ghana. International Journal of Business Research and Management (IJBRM), 4(2), 51-62. https://www.cscjournals.org/library/manuscriptinfo.php?mc=IJBRM-143#CitedBy
Rudnák, I., Alshaabani, A., & Wu, J. (2022). The relationship between perceived organizational support and the intentions of International students in Hungary to stay in Hungary: The role of conflict climate and intercultural adjustment. Sustainability, 14(21), 14025. https://doi.org/10.3390/su142114025
Saunders, M. N. (2012). Organizational trust: A cultural perspective. Development and Learning in Organizations: An International Journal, 26(2). https://doi.org/10.1108/dlo.2012.08126baa.002
Schoorman, F. D., Mayer, R. C., & Davis, J. H. (2007). An integrative model of organizational trust: Past, present, and future. Academy of Management review, 32(2), 344-354. https://doi.org/10.5465/amr.2007.24348410
Sztompka, P. (1999). Trust: A sociological theory. Cambridge university press. https://doi.org/10.2307/3089802
Tan, H. H., & Lim, A. K. (2009). Trust in coworkers and trust in organizations. the Journal of Psychology, 143(1), 45-66. https://doi.org/10.3200/JRLP.143.1.45-66
Ugwu, F. O., Onyishi, I. E., & Rodríguez-Sánchez, A. M. (2014). Linking organizational trust with employee engagement: The role of psychological empowerment. Personnel Review, 43(3), 377-400. https://doi.org/10.1108/PR-11-2012-0198
Vuong, B., Tung, D., Tushar, H., Quan, T., & Giao, H. (2021). Determinates of factors influencing job satisfaction and organizational loyalty. Management Science Letters, 11(1), 203-212. http://dx.doi.org/10.5267/j.msl.2020.8.014
Whiting, S. W., Podsakoff, P. M., & Pierce, J. R. (2008). Effects of task performance, helping, voice, and organizational loyalty on performance appraisal ratings. Journal of Applied Psychology, 93(1), 125. https://psycnet.apa.org/doi/10.1037/0021-9010.93.1.125
Wu, T., Shen, Q., Liu, H., & Zheng, C. (2019). Work stress, perceived career opportunity, and organizational loyalty in organizational change: A moderated mediation model. Social Behavior and Personality: an international journal, 47(4), 1-11. https://doi.org/10.2224/sbp.7824
Yang, J. S., & Tsai, L. C. (2023). The moderating effects of trustor characteristics and the cost of being trusted on the relationship between felt trust and OCB intention. Review of Managerial Science, 17(7), 2417-2441. https://doi.org/10.1007/s11846-022-00584-y
Yee, R. W., Yeung, A. C., & Cheng, T. E. (2010). An empirical study of employee loyalty, service quality and firm performance in the service industry. International Journal of Production Economics, 124(1), 109-120. https://doi.org/10.1016/j.ijpe.2009.10.015
Yilmaz, A., & Atalay, C. G. (2009). A theoretical analyze on the concept of trust in organizational life. European Journal of Social Sciences, 8(2), 341-352. https://www.researchgate.net/publication/289161346
Yu, H., Fang, L., Ling, W., & Zheng, X. (2007). Effects of organizational trust on individual attitudes, turnover intentions and organizational financial performance of Chinese companies. Acta Psychologica Sinica, 39(02), 311. https://journal.psych.ac.cn/acps/EN/Y2007/V39/I02/311
Zand, D. E. (1972). Trust and managerial problem solving. Administrative science quarterly, 229-239. https://doi.org/10.2307/2393957
Zhang, H., Du, L., & Jiang, Z. (2022). “Loyalty to organizations” or “loyalty to supervisors”? Research on differential leadership and employee loyalty behavior: A perspective of insiders and outsiders. Frontiers in Psychology, 13, 971624. https://doi.org/10.3389/fpsyg.2022.971624
