Intra-Firm Trust Transfers: The Contagious Impact of Managers’ Perceptions of Organizational Trust on Their Subordinates

48 Pages Posted: 4 Apr 2022

See all articles by Jasmijn C. Bol

Jasmijn C. Bol

Tulane University - A.B. Freeman School of Business

Katlijn Haesebrouck

Maastricht University

Serena Loftus

Kent State University - Department of Accounting

Date Written: October 27, 2021

Abstract

This paper uses field data from 110 manager-subordinate dyads to investigate whether managers’ perceptions of organizational trustworthiness impact their direct subordinates’ perceptions. Drawing from contagion theory, we further posit that the impact of managers’ perceptions of organizational trustworthiness on their subordinates’ perceptions is negatively related to subordinates’ understanding of the organization’s management control system (MCS). Results indicate that managers’ perceptions of the organization’s trustworthiness are indeed contagious to their direct subordinates and that subordinates’ understanding of the MCS tempers manager-subordinate contagion. Moreover, managers’ perceptions of the organization’s trustworthiness indirectly impact both subordinates’ job satisfaction and retention intentions. By illustrating the contagious effect of managers’ perceptions on subordinate perceptions and behaviors, our study contributes to the literature examining determinants of employees’ organizational trust perceptions.

Keywords: organizational trust, management control system, understanding, contagion

JEL Classification: M41

Suggested Citation

Bol, Jasmijn C. and Haesebrouck, Katlijn and Loftus, Serena, Intra-Firm Trust Transfers: The Contagious Impact of Managers’ Perceptions of Organizational Trust on Their Subordinates (October 27, 2021). Available at SSRN: https://ssrn.com/abstract=3951357 or http://dx.doi.org/10.2139/ssrn.3951357

Jasmijn C. Bol

Tulane University - A.B. Freeman School of Business ( email )

7 McAlister Drive
New Orleans, LA 70118
United States

Katlijn Haesebrouck (Contact Author)

Maastricht University ( email )

Netherlands

Serena Loftus

Kent State University - Department of Accounting ( email )

P.O. Box 5190
Kent, OH 44242-0001
United States

HOME PAGE: http://https://www.kent.edu/business/profile/serena-loftus-phd

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