When power shifts towards women or lesbian and gay coworkers: Effects on trust in coworkers and the role of firm international proactiveness

William Newburry, Marcelo J. Alvarado-Vargas and Michel Hermans

Journal of International Management, 2025, vol. 31, issue 4

Abstract: We explore the effects of perceived shifts of power towards minority groups on trust in coworkers. Drawing on intergroup threat theory (ITT), we argue that while the realistic threat of loss of power is similar across minority groups, differences in the extent to which groups are stigmatized and the application of social norms regarding equal opportunity and fairness explain different effects of threat perceptions on trust. We differentiate between gender, a surface-level diversity type, and sexual orientation, a deep-level diversity type to test whether differences between these groups explain differential effects on perceptions of threat resulting from power shifts. Additionally, we argue that suppression of local stereotypes by global social norms regarding equal opportunity and fairness is more likely to occur when individuals perceive a need to adhere to international behavioral frames. Hence, we examine firm international proactiveness as a moderator of associations between threat perceptions and trust in coworkers. Within a sample of 841 respondents across ten Latin American countries, and controlling for country-level characteristics, we find that diversity type matters, and that social norms regarding equal opportunity and fairness become more relevant to the extent that a firm is perceived to be more oriented towards global markets. Our findings suggest that organizations may increase trust among coworkers –an indicator of inclusion– by increasing awareness of concerns of less visible minority groups and by emphasizing supra-national social norms.

Keywords: Diversity, equity, and inclusion (DEI); Diversity management; Gender; Sexual orientation; Power; Trust; Equal opportunity; Fairness; Global social norms (UN-SDGs) (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1016/j.intman.2025.101255

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