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The Impact of Supportive Work Environment, Trust, and Self-Efficacy on Organizational Learning and Its Effectiveness: A Stimulus-Organism Response Approach

Saman Attiq (), Hassan Rasool and Shahid Iqbal
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Saman Attiq: University of Wah, Wah Cantt
Hassan Rasool: Pakistan Institute of Development Economics, Islamabad
Shahid Iqbal: National Defense University, Islamabad

Business & Economic Review, 2017, vol. 9, issue 2, 73-100

Abstract: This study examines the relationship among management and peer support, trust, self-efficacy, organizational learning, and organizational effectiveness. Within organization, supportive work environment plays a significant role in the establishment of employees’ learning process. The causal design is used to analyze the impact of supportive work environment on employees’ psychological influence (i.e. trust and self-efficacy) and organizational learning. The nature of the study is cross-sectional with convenience sampling technique. Data is collected from employees of 400 banks located at twin cities i.e. Islamabad and Rawalpindi through self-administered questionnaire. Data was analyzed through Structural Equation Modeling (SEM) through maximum likelihood. Finding indicates that top-management and co-worker support (i.e. stimulus) had significant positive impact on employee’s trust and self-efficacy (i.e. organism) and organism acts as mediator between stimulus and response. Moreover, employees’ trust (cognitive/emotional), and self-efficacy had significant positive impact on organizational learning and organizational effectiveness (i.e. response). Bank managers, industry associations, training providers, and research institutions may use findings to bring improvements in organizational learning mechanisms and employee behaviors to enhance the overall effectiveness of the organizations.

Keywords: Organizational effectiveness; organizational learning; emotional trust; cognitive trust; self-efficacy; management support (search for similar items in EconPapers)
Date: 2017
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Handle: RePEc:bec:imsber:v:9:y:2017:i:2:p:73-100