Academic Journals Database
Disseminating quality controlled scientific knowledge

Trust within the Organizations of the New Economy: an Empirical Analysis of the Consequences of Institutional Uncertainty

ADD TO MY LIST
 
Author(s): Marco Tulio F. Zanini | Edward J. Lusk | Birgitta Wolff

Journal: Revista de Administração Contemporânea
ISSN 1415-6555

Volume: 13;
Issue: 1;
Start page: 72;
Date: 2009;
VIEW PDF   PDF DOWNLOAD PDF   Download PDF Original page

Keywords: organizational trust | institutional uncertainty | new economy.

ABSTRACT
This study investigates the effects of different institutional frameworks on the levels of trust within hierarchies. Following the insight into the changing of labour contracts provided by New Economy theorists and International Labour Organization [ILO] reports, this study investigates the possible differences in the levels of trust between two paradigms: the Old Economy and the New Economy. We argue that singular institutional changes which better characterize the New Economy in the form of environmental uncertainty set considerable constrains on trust development. By approaching trust as a dependent variable in a cross-industrial comparison, a questionnaire survey was carried out in Brazil accessing the levels of trust within seven Brazilian private companies. From the literature review and empirical observation of the reality of these organizations, companies were identified and classified into different groups. The study concludes that relative high institutional uncertainty considerably limits the development of trust levels within those companies operating in the New Economy.
Why do you need a reservation system?      Affiliate Program