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Inter-Organizational Trust on Financial Performance: Proposing Innovation as a Mediating Variable to Sustain in a Disruptive Era

Author

Listed:
  • Judit Oláh

    (Department of Management, Faculty of Applied Sciences, WSB University, 41-300 Dabrowa Górnicza, Poland)

  • Yusmar Ardhi Hidayat

    (Department of Business Administration, Politeknik Negeri Semarang, Semarang 50275, Indonesia)

  • Zdzisława Dacko-Pikiewicz

    (Department of Pedagogy, WSB University, 41-300 Dabrowa Górnicza, Poland)

  • Morshadul Hasan

    (Károly Ihrig Doctoral School of Management and Business, University of Debrecen, 4032 Debrecen, Hungary)

  • József Popp

    (Department of Management, Faculty of Applied Sciences, WSB University, 41-300 Dabrowa Górnicza, Poland)

Abstract

Hungarian Information and Communication Technology (ICT) companies have an essential role to play in a disruptive era. ICT firms should collaborate and innovate to obtain profit. The elusive correlation between trust in business partners and financial performance inspired this study, which proposed innovation as a mediating variable. The research had two objectives: to investigate the effect of inter-organizational trust on financial performance and innovation and to observe the role of innovation in improving financial performance within different categories of ICT companies. The population included active Hungarian ICT firms. The analysis used 100 samples, comprising micro-, small-, and medium-sized ICT corporations. Those samples were selected by random cluster sampling. This research used Partial Least Square Structural Equation Modelling. This study supported the idea that inter-organizational trust improved innovation, and that innovation enhanced financial performance. As an expected finding, innovation could mediate a positive direction between inter-organizational trust and financial performance.

Suggested Citation

  • Judit Oláh & Yusmar Ardhi Hidayat & Zdzisława Dacko-Pikiewicz & Morshadul Hasan & József Popp, 2021. "Inter-Organizational Trust on Financial Performance: Proposing Innovation as a Mediating Variable to Sustain in a Disruptive Era," Sustainability, MDPI, vol. 13(17), pages 1-18, September.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:17:p:9947-:d:629112
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    References listed on IDEAS

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