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Employee trust in management and mutual gains hypothesis in Japanese firms

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  • Noda, Tomohiko

Abstract

This study analyzes whether employee trust in management results in mutual gains for employers and employees in the Japanese automobile industry. The results suggest that employees’ productivity-enhancing efforts and sense of job security are both positively related to their trust in management. The findings clearly support the mutual gains hypothesis. The results also indicate that in fostering employee trust, management plays a supportive role in enabling unions to verify its claims by disclosing high-quality information, whereas unions play an important role in mitigating information asymmetry.

Suggested Citation

  • Noda, Tomohiko, 2020. "Employee trust in management and mutual gains hypothesis in Japanese firms," Journal of the Japanese and International Economies, Elsevier, vol. 55(C).
    • Handle: RePEc:eee:jjieco:v:55:y:2020:i:c:s0889158318300959
    DOI: 10.1016/j.jjie.2020.101062
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