The trusted general manager and business unit performance: empirical evidence of a competitive advantage

TLDR

Employee trust in a general manager is posited as an internal factor that can give firms a competitive advantage. The study empirically investigates how trust in a business unit’s general manager relates to organizational performance. Trust was significantly related to sales, profits, and employee turnover, and managers with differing levels of trust varied in perceived ability, benevolence, and integrity. © 2000 John Wiley & Sons, Ltd.

Abstract

Employee trust for the general manager is proposed as an internal organizational characteristic that provides a competitive advantage for the firm. This paper empirically examines the relationship between trust for a business unit's general manager and organizational performance. Trust was found to be significantly related to sales, profits and employee turnover in the restaurant industry. Managers who were either more or less trusted differed significantly in perceptions of their ability, benevolence and integrity. Copyright © 2000 John Wiley & Sons, Ltd.