The Mediating Effect of Organizational Trust in the Relationship Between Leader Member Exchange and Organizational Innovativeness

Abstract

The paper focuses on the mediating effect of organizational trust and its cognitive and affective components on the impact of leadership relationship on different forms of organizational innovativeness such as product, market, behaviour, process and strategy. The empirical data was collected in a public organization (n=757) in Lithuania in 2013. A series of regression analysis suggest that organizational trust has partially mediating effect on the studied relationship. Leadership relationship and organizational trust have the strongest explanative power for behaviour innovativeness. In particular, the affective component of organizational trust influences the effect of leadership relationship on this form of innovativeness. Besides, affective trust plays a more significant role than cognitive trust in increasing processes innovativeness. However, cognitive trust is more powerful in accounting for development of product innovativeness. The authors discuss managerial implications to the studied sector organizations and suggest some directions for further research. The type of the article: Empirical study.

Ethical entrepreneurial leadership and organizational trust for organizational sustainability

“…Based on this argument, the research hypothesis can be built: Hypothesis 3: Ethical Entrepreneurial Leadership has a significant positive effect on organizational trust Based on the suspicion that Ethical Entrepreneurial Leadership influences organizational trust and organizational sustainability, and organizational trust also affects organizational sustainability, then referring to these arguments, organizational trust can be assumed to play a role as mediator in the influence of entrepreneurial ethical leadership on organizational sustainability. In the study of Pucetaite and Novelskaite (2014), organizational trust is placed as a mediator in the relationship of leadership to innovation, where organizational trust significantly acts as a mediator in that relationship. Organizational trust is also placed as a mediator in leadership relationships that serve with organizational communication (Rezaei et al, 2012).…”

The Effect of Leadership on Employee Loyalty and Organizational Trust As Mediation Variables

“…Furthermore, in the same study conducted by (Isik et al, 2015) There is a positive and significant relationship between communication, openness to innovation, participation, trust in team work and organizational trust, trust in management, trust in colleagues, and trust in the workplace. And in the following research conducted by In research (Pucetaite & Novelskaite, 2014) shows that organizational trust has a partial mediating effect. The overall results show that the relationship between leadership and employee loyalty and organizational trust as a mediating variable has a relationship between these variables.…”

“…In research shows that organizational trust as a partial mediating effect. According to Bettencourt et al (Pucetaite & Novelskaite, 2014) in (Luthans, 2021), explained that employee loyalty is the behavior of members in an organization that reflects loyalty to the organization through promotions and always maintains the image of the company outside the company.…”

“…It is stated that leadership can affect employee loyalty. In research (Pucetaite & Novelskaite, 2014) showed that organizational trust had a partially mediating effect on the relationships studied.…”

The effects of trust mediator and education level moderator on adoption of Islamic banking system in Tajikistan

“…However, from a review of the literature, it is clear that not many past studies used adoption in SEM and the effect of trust as a mediating factor and demographic influences. However, there are some studies that have used the adoption of IB with the SEM model via mediator factor effect (Coulter and Coulter, 2002;Edwards and Lambert, 2007;Little et al, 2007;Misbach et al, 2013;Pucetaite and Novelskaite, 2014;Jamshidi et al, 2014). Awareness is among the important factors that affect the diffusion decision process directly and indirectly through other mediator variables as well (Popoola, 2013).…”