The role of trust in organisational innovativeness

Purpose - The purpose of this paper is to analyse the effects of the dimensions of organisational trust on organisational innovativeness in a relatively large survey sample of the information and communication technology (ICT) and paper and pulp industries in Finland. Design/methodology/approach - Organisational trust is deemed to consist of both interpersonal and impersonal types of trust. The empirical part of the study shows the relationship between various types of trust and dimensions of organisational innovativeness. Quantitative empirical analysis is based on a survey of 40 organisational units and 214 respondents within the ICT and paper and pulp industries. Findings - The impact of different types of organisational trust on dimensions of organisational innovativeness was analyzed. The results imply that the impersonal form in particular, namely institutional trust, has an important role in determining organisational innovativeness. Research implications - This study contributes both to the literature on organisational innovativeness, as well as to the emerging theory on trust, in its approach to trust as not only an interpersonal issue, but also as something with impersonal aspects. Practical implications - It is suggested that managers should pay special attention to impersonal forms of trust, i.e. to the institutional dimension of organisational trust. Above all, institutional trust and its development could be seen as a strategic question for companies. Originality/value - This study makes a significant theoretical contribution by examining the linkages between various dimensions of organisational trust and organisational innovativeness, which have previously been studied only to a very minor extent. It thus provides a richer understanding of the relationship between organisational trust and innovativeness.