Study Of Different Organizational Trust In The Context Of Entrepreneurial Orientation And Organizational Performance Relationship

Entrepreneurship orientation (EO) characterizes as a special mode, which displays high entrepreneurship in making corporate strategy. In the past 20 years, EO has come to be regarded as an essential issue because it can damatically enhance organization competitive capacity. Previous researches concerning EO were mostly interested in factors outside the organization limiting the association between EO and corporate performance. However, little researchers concerned about the factors inside organization, which in the meantime influencing the linkage between EO and corporate performance. This thesis aims at taping this void domain.It is proposed that organizational trust (OT) as an important supporting factor impacts on the relationship between EO and organizational performance. In order to test this proposition, this research firstly reviewed the extant literature about OT and constructed the conceptual framework of organizational trust based on the preceding researchers' contribution. In this thesis, OT is regarded as an integrating perception from persons within the organization, which including three facets: trust for direct leader, trust for co-workers and trust for top management. In the following, this theoretical framework was empirically tested using multiple methods and the valid result supporting this idea were found.Rested on the developed measuring instrument, the hypothesis that OT moderated the relationship between EO and organizational performance was scrutinized. The empirical result confirmed our expectation that the OT was a pivotal factor influencing the contribution form EO to corporate performance. In another word, when buttressed with higher level organizational trust, the organization adopting entrepreneurial type of corporate strategy could obtain better incremental performance. However, if organization does not accompany with higher level OT, organization can still benefit from adopting EO, but the magnitude is inferior to those higher level in OT. Due to the result that the three sub dimension has its special, but complemental routine contributing to organizational performance, the moderating effect in the three sub dimension conditions: risk taking, proactiveness and innovation, is investingated in this thesis. The consequential outcomes revealed that OT indeed moderated the relationship between the relationship between risk-taking, innovation and corporate performance, while the data partly support the moderating relationship between proactiveness and organization performance. Finally, directed at presenting a clear and systematical picture EO contributing to organization performance, this research synthesized the moderating factors simultaneously outside and inside the organization. The result indicated that the OT has different contribution in different business environment and the OT should be particularly appreciated in hard competitive corporate environment because OT takes all-important buttressing effect for OE.