Enhancing multiple dimensions of performance in small professional firms through leader-follower trust

Fenwick Feng Jing, Gayle C. Avery*, Harald Bergsteiner

*Corresponding author for this work

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

This study reports a range of positive effects of trusting relationships between leaders and followers on multiple measures of performance in small professional service firms. Six performance measures were used: financial outcomes, staff and customer satisfaction, productivity, and staff and manager tenure. Predictions that firms with high levels of manager-follower trust would outperform their low-trust peers were supported on all measures. Importantly, the findings indicated that retaining managers and staff in small firms is associated with high levels of manager-follower trust. Key points: Fostering high levels of trust between managers and their staff enhances productivity and financial performance. Both managers and employees stay longer in small firms with high trust environments. Customer satisfaction is greater where managers and their staff enjoy high-trust relationships.

Original languageEnglish
Pages (from-to)351-369
Number of pages19
JournalAsia Pacific Journal of Human Resources
Volume52
Issue number3
DOIs
Publication statusPublished - Jul 2014

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