A. Pastra, D. Koufopoulos, Vasiliki D. Skintzi, Tafsir Johansson, Nikola Samac
{"title":"Exploring trust in the boardroom: the case of Nordic region","authors":"A. Pastra, D. Koufopoulos, Vasiliki D. Skintzi, Tafsir Johansson, Nikola Samac","doi":"10.1108/TPM-11-2020-0093","DOIUrl":null,"url":null,"abstract":"\nPurpose\nThis paper aims to understand the relationship between the trust of executives in their board, board effectiveness (board performance and strategic decision quality) and organizational performance (financial and operational performance).\n\n\nDesign/methodology/approach\nData were collected from 184 board members in the Nordic region, using cross-sectional research design. Confirmatory factor analysis was used to test the validity of the used scales, whereas correlational analysis and mediation analysis via PROCESS macro in SPSS were used for testing of the hypotheses.\n\n\nFindings\nTrust between board members is positively correlated with both dimensions of board effectiveness and both tested dimensions of organizational performance. Besides, trust between the board members positively affects both financial and operational performance (significant total effects in mediation analysis). However, trust had a direct effect only on financial performance, whereas it shows an indirect effect on operational performance through both mediators, board performance and strategic decision quality.\n\n\nResearch limitations/implications\nFuture research should investigate trust into the board using a longitudinal design, and expand the sample cross-culturally, and control for the influence of other interpersonal variables in board members.\n\n\nPractical implications\nThe development of trust in work relationships serves as the foundation for the establishment of significant team and organizational benefits. Business leaders should take into consideration trust issues in business teams and cultivate a trust culture in their organizations.\n\n\nSocial implications\nThe findings advance theoretical, social and empirical understanding of trust of executives in their board and its effect on board performance, strategic decision quality and perceived performance. The development of trust in work relationships enhances team performance, networks with strategic partners, community and government, and serves as the foundation for the establishment of trust in the society.\n\n\nOriginality/value\nThis is one of the scarce studies that examines direct and indirect effects of trust in board and organizational outcomes.\n","PeriodicalId":46084,"journal":{"name":"Team Performance Management","volume":null,"pages":null},"PeriodicalIF":1.6000,"publicationDate":"2021-03-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"3","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Team Performance Management","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/TPM-11-2020-0093","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 3
Abstract
Purpose
This paper aims to understand the relationship between the trust of executives in their board, board effectiveness (board performance and strategic decision quality) and organizational performance (financial and operational performance).
Design/methodology/approach
Data were collected from 184 board members in the Nordic region, using cross-sectional research design. Confirmatory factor analysis was used to test the validity of the used scales, whereas correlational analysis and mediation analysis via PROCESS macro in SPSS were used for testing of the hypotheses.
Findings
Trust between board members is positively correlated with both dimensions of board effectiveness and both tested dimensions of organizational performance. Besides, trust between the board members positively affects both financial and operational performance (significant total effects in mediation analysis). However, trust had a direct effect only on financial performance, whereas it shows an indirect effect on operational performance through both mediators, board performance and strategic decision quality.
Research limitations/implications
Future research should investigate trust into the board using a longitudinal design, and expand the sample cross-culturally, and control for the influence of other interpersonal variables in board members.
Practical implications
The development of trust in work relationships serves as the foundation for the establishment of significant team and organizational benefits. Business leaders should take into consideration trust issues in business teams and cultivate a trust culture in their organizations.
Social implications
The findings advance theoretical, social and empirical understanding of trust of executives in their board and its effect on board performance, strategic decision quality and perceived performance. The development of trust in work relationships enhances team performance, networks with strategic partners, community and government, and serves as the foundation for the establishment of trust in the society.
Originality/value
This is one of the scarce studies that examines direct and indirect effects of trust in board and organizational outcomes.
期刊介绍：
This international journal contributes to the successful implementation and development of work teams and team-based organizations by providing a forum for sharing experience and learning to stimulate thought and transfer of ideas. It seeks to bridge the gap between research and practice by publishing articles where the claims are evidence-based and the conclusions have practical value. Effective teams form the heart of every successful organization. But team management is one of the hardest challenges faced by managers.
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