Investigating interpersonal trust determinants in Western companies' subsidiaries: Empirical evidence

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Unggul Purwohedi, Bruce Gurd

2016 Journal for Global Business Advancement Vol. 9 Issue 1 Conference paper Cited by 1 SDG 17SDG 16SDG 12 Quartile

Abstract

This study focuses on trust on supervisor (interpersonal trust) building among staff in the subsidiary of a multinational company. We investigate an antecedent of trust in performance evaluation and the interaction between national and organisational culture. We surveyed employees and managers across all departments of three multinational companies operating in Indonesia. We find that national culture dimensions affected different orientations of organisational practices across all levels, but especially for the employee vs. job orientation culture. Formality of performance evaluation will increase trust of supervisors among local subsidiary members. Potential implications for optimising the role of local managers in MNC and performance evaluation implementation are discussed. Copyright © 2016 Inderscience Enterprises Ltd.

Affiliations

Department of Accounting, Faculty of Economics, Universitas Negeri Jakarta, Jakarta, 13220, Indonesia; School of Management, University of South Australia, Adelaide, 5001, SA, Australia

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