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

James H. Davis, F. David Schoorman, Roger C. Mayer and Hwee Hoon Tan

Strategic Management Journal, 2000, vol. 21, issue 5, 563-576

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.

Date: 2000
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https://doi.org/10.1002/(SICI)1097-0266(200005)21:53.0.CO;2-0

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