The Impact of Trust on the Approach to Management—A Case Study of Creative Industries

Abstract

Companies operating in the creative industries are struggling with the simultaneous pressure to be innovative and creative, which requires access to unique resources (such as knowledge and creative potential), but also means they must be effective in actions taken. To find a balance between those tensions, they are using the networking approach. Therefore, it seems that networking is becoming a high priority and that being involved in networks is a crucial part of such companies’ business models. Nevertheless, their competitive advantage is based on creative potential, which means that they are rooted in building and maintaining internal relations. As a result, in creative industries, relationships with internal and external stakeholders are crucial, but are strongly based on trust. Thus, the main aim of this paper is to investigate whether trust is the main factor influencing the approach to management. Moreover, we tried to understand the impact of trust on the managerial actions taken. We used the multiple case study research method to examine the role of trust in cooperation, as well as in shaping internal relations in companies operating in the creative industries. To achieve that goal, 10 companies from Poland and Portugal (5 from each country) were investigated in order to find any regularities. By analyzing the research results, it was possible to identify consistencies among the sample and present the main findings. Therefore, four approaches distinguished by the degree of trust were identified. When the level of trust is low, companies are operating within their network based on close relationships, as well as using collective participation where the team is perceived as a key success factor. On the other hand, when the level of trust is higher, companies move towards cooperative management (where the role of competitors is crucial) as well as individual participation (where an employee is engaged in the creative, as well as the decision-making, process). As a result, a theoretical model is proposed that includes the level of trust and the external and internal stakeholders’ perspective. Based on our research, trust can also be added as a fourth ‘T’ to the ‘3T’ (talent, tolerance and technology) concept proposed by Florida (2003).

HR Practices for Supporting Interpersonal Trust and Its Consequences for Team Collaboration and Innovation

“…Furthermore, trust promotes psychological safety and confidence, which leads to openness, boosts communication, and encourages idea sharing [94]. Trust is an essential condition for effective collaboration [69,95]. In addition, it is a basic factor that helps to maintain the sustainable management of organizations [96][97][98].…”

“…Numerous studies have confirmed the relationship between trust and effectiveness [61,68]. Trust is recognized as a necessary element of effective collaboration, which influences the managerial approach [69]. Moreover, it has been confirmed that trust enables effective team collaboration [70,71].…”

The mediating effect of team cooperation on tacit knowledge transfer and interpersonal trust

“…To conclude, cooperation describes the collective action with which individuals pursue organisational goals. The extant research has confirmed that there are links between trust and team cooperation (Fink, Kraus, 2007;Ruohomaa, Viljanen, & Kutvonen, 2010;Radomska, Wołczek, Sołoducho-Pelc, & Silva, 2019). Benson, Ribbers, and Blitstein (2014) identified the connection between trust and cooperation, implying that the degree of trust affects levels of collaboration in IT organisations.…”

Analysis of market concentration in creative industry

“…They involve the supply of goods and services that contain a substantial element of artistic and intellectual activities associated with a vital role in social and human development. [13] Although we can find different definitions of the creative industries, in most research that sector has been investigated mainly based on specific characteristics [9].…”

“…The creative industries involve the concretization of an image, through whatever medium for some form of economic return [2]. Due to creative industries major impact on the development of the economy and the society, cultural organizations and creative companies, which generate creativity, should attract more interest and support from state institutions [9]. Especially at the early stage of its development, the creative sector needs to be supported by the state.…”