TRUSTING IN INSTITUTIONS, NOT PEOPLE
Paper:
THE DEVELOPMENT OF ORGANIZATIONAL TRUST
IN THE CHINESE BUSINESS CONTEXT
(excerpt):
Despite the ostensible cultural affinity between China and Hong Kong, it was found that managers in Hong Kong firms could not rely on traditional foundations for trusting in their China units. Moreover, the traditional means of coping with unreliable institutional provisions, namely direct personal
contact with government officials, was not effective in generating trust in local personnel.
It was the contextual system itself rather than personal contacts with the people administering it that either facilitated or inhibited the development of trust in local staff. Institutional foundations in fact provided a sounder support for organizational trust.
The more that managers perceived they could rely on the institutional system rather than having to depend on officials, the greater tended to be their trust in local staff. In addition, a trust-conscious management could actively generate trust in its cross-border units through policies that enhanced personal rapport with local staff and introduced an internal institutionalization of organizational practice. These initiatives appear to be valuable ways of developing trust within organizations particularly in an environment such as that of contemporary China where both traditional and institutional foundations may be not be readily available to foreign managers. The positive correlation of trust with organizational performance adds an incentive for managers to explore these initiatives.
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