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A model for the role of trust in firm level performance: The case of family businesses

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  • Allen, Mathew R.
  • George, Bradley A.
  • Davis, James H.

Abstract

We explore the process through which trust within family firm leadership contributes to firm level performance. Specifically, we develop a model describing the underlying process through which trust influences commitment and in turn organizational performance. The effect of trust on the performance of family businesses is further understood by addressing the role of family member status and generation in moderating the relationship between trust and commitment. We test this model using longitudinal responses from top managers in family businesses. Results indicate that the effect of trust on performance takes place through commitment with family member status moderating the relationship.

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  • Allen, Mathew R. & George, Bradley A. & Davis, James H., 2018. "A model for the role of trust in firm level performance: The case of family businesses," Journal of Business Research, Elsevier, vol. 84(C), pages 34-45.
    • Handle: RePEc:eee:jbrese:v:84:y:2018:i:c:p:34-45
    DOI: 10.1016/j.jbusres.2017.10.048
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    4. Samuel Adomako & Joseph Amankwah‐Amoah & Albert Danso & Renata Konadu & Samuel Owusu‐Agyei, 2019. "Environmental sustainability orientation and performance of family and nonfamily firms," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1250-1259, September.
    5. Muhammad Khan & Hee Yong Lee & Jung Han Bae, 2019. "The Role of Transparency in Humanitarian Logistics," Sustainability, MDPI, vol. 11(7), pages 1-27, April.
    6. Judit Oláh & Yusmar Ardhi Hidayat & Zdzisława Dacko-Pikiewicz & Morshadul Hasan & József Popp, 2021. "Inter-Organizational Trust on Financial Performance: Proposing Innovation as a Mediating Variable to Sustain in a Disruptive Era," Sustainability, MDPI, vol. 13(17), pages 1-18, September.
    7. Mahto, Raj V. & Vora, Gautam & McDowell, William C. & Khanin, Dmitry, 2020. "Family member commitment, the opportunity costs of staying, and turnover intentions," Journal of Business Research, Elsevier, vol. 108(C), pages 9-19.
    8. Jara, Mauricio & López-Iturriaga, Félix J. & Torres, Juan Pablo, 2021. "Firm value and pyramidal structures: New evidence for family firms," Journal of Business Research, Elsevier, vol. 127(C), pages 399-412.
    9. Deferne, Marie & Bertschi-Michel, Alexandra & de Groote, Julia, 2023. "The role of trust in family business stakeholder relationships: A systematic literature review," Journal of Family Business Strategy, Elsevier, vol. 14(1).
    10. Wang, Lin & Tang, Yingkai & Chen, Yaozhi & Wang, Kun, 2021. "Be a better boss. Employee treatment, trust level and family business innovation: Evidence from China," Research in International Business and Finance, Elsevier, vol. 58(C).
    11. Braun, Erik & Zenker, Sebastian, 2022. "In governments we trust: A two-country Brexit field experiment on perceived uncertainty as mediator for consumer decisions," Journal of Business Research, Elsevier, vol. 138(C), pages 335-346.
    12. Kettunen, Jukka & Martikainen, Minna & Voulgaris, Georgios, 2021. "Employment policies in private loss firms: Return to profitability and the role of family CEOs," Journal of Business Research, Elsevier, vol. 135(C), pages 373-390.

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