An Empirical Study on the Organizational Trust

This case study explores the relationship between an organization and its employees. The researchers used social exchange theory and inducement-contribution theory to conduct the study. The research aimed to determine if employees are more innovative when organizational trust is high.

4. Discussion

4.2. Practical Implications

First, building and maintaining organizational trust is important to employers. The results of this study have shown that organizational trust is the key antecedent of employee innovative behavior within the organization. Organizations need to improve employees' organizational trust through managerial practices. In the interactive process between employees and organizations, employers need to shape a supportive work environment, providing a variety of inducements that can construct and maintain the employees' trust in the organization. In turn, they are more willing to remain in the firm and exhibit excellent performance.

Secondly, the empirical results indicate that organizational trust partially mediates the relationship between EOR and innovative behaviors. Therefore, we suggest that organizations provide employees with investment and high expectations to maintain long-term relationships with employees, which can make employees perceive themselves as members of the organization, and enhance the employees' trust in their organization, which, in turn, promotes employees' extra role behavior, such as innovative behaviors.

Thirdly, we find that an innovative climate moderates the relationship between organizational trust and innovative behaviors. It is recommended that organizations increase contributive expectations for employees (e.g., innovative climate), such as by encouraging employees to put forward new ideas, and explore new methods in technology, procedures, or products. Employers not only have employees recognize the organization's inputs or incentives, but also have employees recognize organization's expectations (e.g., innovative climate). In this context, it will increase organizational trust and promote innovative behavior.