Skip to main content

Feeling trusted by business leaders in China: Antecedents and the mediating role of value congruence

Asia Pacific Journal of Management volume 24, pages 321–340 (2007)Cite this article

Abstract

This paper examines the antecedents of felt trust, an under-explored area in the trust literature. We hypothesized that subordinates’ felt trust would relate positively with their leaders’ moral leadership behaviors and negatively with autocratic leadership behaviors and demographic differences between leaders and themselves. We also hypothesized the above relationships to be mediated by the leader-member value congruence. Results supported our hypotheses that value congruence mediated between autocratic leadership behaviors and demographic differences and subordinates’ felt trust, but not moral leadership behaviors, which had direct effects on subordinates’ perception of feeling trusted. Theoretical and practical implications are discussed.

This is a preview of subscription content, access via your institution.

Access options

Buy single article

Instant access to the full article PDF.

USD 39.95

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Figure 1
Figure 2

Notes

  1. To assess the degree of congruence, we consulted many kinds of direct and indirect techniques used in Personality-Organization fit literature. Among the indirect techniques, bivariate congruence indices of algebraic (X − Y), absolute (|X − Y|), or squared difference (X − Y)2 have been typically used. In the case of multiple predictors, researchers are used to combining them into a Profile similarity indices (PSIs) such as the sum of algebraic difference (D 1), the sum of absolute differences (|D|), the Euclidean distance (D), or the correlation between two profiles (Q) (Chatman, 1991; Edwards, 1993; Kristof, 1996).

References

  • Akaike, H. 1987. Factor analysis and AIC. Psychometrika, 52: 317–332.

    Article  Google Scholar 

  • Allinson, C. W., Armstrong, S. J., & Hayes, J. 2001. The effects of cognitive style on leader–member exchange: A study of manager–subordinate dyads. Journal of Occupational and Organizational Psychology, 74: 201–220.

    Article  Google Scholar 

  • Aryee, S., Budhwar, P. S., & Chen, Z. X. 2002. Trust as a mediator of the relationship between organizational justice and work outcomes: Test of a social exchange model. Journal of Organizational Behavior, 23: 267–285.

    Article  Google Scholar 

  • Bass, B. M., & Avolio, B. J. 1993. Transformational leadership: A response to critiques in leadership theory and research perspectives and directions. In Chemers M., & Ayman, R. (Eds.), Leadership theory and research: Perspectives and directions, 49–80. New York: Academic.

    Google Scholar 

  • Bauer, T. N., & Green, S. G. 1996. Development of leader–member exchange: A longitudinal test. Academy of Management Journal, 39: 1538–1637.

    Article  Google Scholar 

  • Bennis, W. 1999. The end of leadership: Exemplary leadership is impossible without full inclusion, initiatives, and cooperation of followers. Organizational Dynamics, 28: 71–80.

    Article  Google Scholar 

  • Bentler, P. M. 1990. Comparative fit indexes in structural models. Psychological Bulletin, 107: 238–246.

    Article  Google Scholar 

  • Bentler, P. M., & Chou, C. P. 1987. Practical issues in structural modeling. Sociological Methods & Research, 16: 78–117.

    Article  Google Scholar 

  • Bollen, K. A. 1987. Total, direct, and indirect effects in structural equation models. In Clogg, C. C. (Eds.), Sociological methodology 1987, 37–69. Washingtion, DC: American Sociological Association.

    Google Scholar 

  • Brower, H. H., Schoorman, F. D., & Tan, H. H. 2000. A model of relational leadership: The integration of trust and leader–member exchange. Leadership Quarterly, 11: 227–250.

    Article  Google Scholar 

  • Browne, M. W., & Cudeck, R. 1993. Alternative ways of assessing model fit. In Bollen, K. A., & Long, J. S. (Eds.), Testing structural equation models, 136–162. Newbury Park, CA: Sage.

    Google Scholar 

  • Byrne, D. E. 1971. The attraction paradigm. New York: Academic.

    Google Scholar 

  • Chatman, J. A., 1991. Matching people and organizations: Selection and socialization in public accounting firms. Administrative Science Quarterly, 36: 459–484.

    Article  Google Scholar 

  • Chatman, J. A., & Flynn, F. J. 2001. The influence of demographic heterogeneity on the emergence and consequences of cooperative norms in work teams. Academy of Management Journal, 44: 956–974.

    Article  Google Scholar 

  • Chen, C. C., Chen, Y. R., & Xin, K. 2004. Guanxi practices and trust in management: A procedural justice perspective. Organization Science, 15: 200–209.

    Article  Google Scholar 

  • Cheng, B. S., Chou, L. F., Wu, T. Y., Huang, M. P., & Farh, J. L. 2004. Paternalistic leadership and subordinate responses: Establishing a leadership model in Chinese organizations. Asian Journal of Social Psychology, 7: 89–117.

    Article  Google Scholar 

  • Clegg, C., Unsworth, K., Epitropaki, O., & Parker, G. 2002. Implicating trust in the innovation process. Journal of Occupational and Organizational Psychology, 75: 409–422.

    Article  Google Scholar 

  • Conger, J. A., & Kanungo, R. N. 1988. The empowerment process: Integrating theory and practice. Academy of Management Review, 13: 471–482.

    Article  Google Scholar 

  • Cummings, L. L., & Bromiley, P. 1996. The organizational trust inventory (OTI): Development and validation. In Kramer, R. M., & Tyler, T. R. (Eds.), Trust in organizations: Frontiers of theory and research, 302–319. Thousand Oaks, CA: Sage.

    Google Scholar 

  • Dansereau, F., Graen, G., & Haga, W. J. 1975. A vertical dyad linkage approach to leadership within formal organizations. Organizational Behavior and Human Performance, 13: 46–78.

    Article  Google Scholar 

  • Deutsch, M. 1958. Trust and suspicion. Journal of Conflict Resolution, 2: 265–279.

    Article  Google Scholar 

  • Dirks, K. T., & Ferrin, D. L. 2002. Trust in leadership: Meta-analytic findings and implications for research and practices. Journal of Applied Psychology, 87: 611–628.

    Article  Google Scholar 

  • Dorfman, P. W., Howell, J. P., Hibino, S., Lee, J. K., Tate, U., & Bautista, A. 1997. Leadership in western and Asian countries: Commonalities and differences in effective leadership processes across cultures. Leadership Quarterly, 8: 233–274.

    Article  Google Scholar 

  • Edwards, J. R. 1993. Problems with the use of profile similarity indices in the study of congruence in organizational research. Personnel Psychology, 46: 641–665.

    Article  Google Scholar 

  • Egri, C. P., & Ralston, D. A. 2004. Generation cohorts and personal values: A comparison of China and the U.S. Organization Science, 15: 210–220.

    Article  Google Scholar 

  • England, G. W. 1978. Managers and their value systems: A five-country comparative study. Columbia Journal of World Business, 13: 35–44.

    Google Scholar 

  • England, G. W., & Lee, R. 1974. The relationship between managerial values and managerial success in the United States, Japan, India, and Australia. Journal of Applied Psychology, 59: 411–419.

    Article  Google Scholar 

  • Farh, J. L., & Cheng, B. S. 2000. A cultural analysis of paternalistic leadership in Chinese organizations. In Li, J. T., Tsui, A. S., & Weldon, E. (Eds.), Management and organizations in Chinese context, 84–130. New York: St. Martin’s.

    Google Scholar 

  • Feather, N. T. 1995. Values, valences, and choice: The influence of values on the perceived attractiveness and choice of alternatives. Journal of Personality and Social Psychology, 68: 1135–1151.

    Article  Google Scholar 

  • Fishbein, M., & Ajzen, I. 1975. Belief, attitude, intention, and behavior: An introduction to theory and research. Reading, MA: Addison-Wesley.

    Google Scholar 

  • Flynn, F. J., Chatman, J. A., & Spataro, S. E. 2001. Getting to know you: The influence of personality on impressions and performance of demographically different people in organizations. Administrative Science Quarterly, 46: 414–442.

    Article  Google Scholar 

  • Fox, J. 1980. Effects analysis in structural equation models. Sociological Methods and Research, 9: 3–28.

    Article  Google Scholar 

  • Fu, P. P., Chow, I. H. S., & Zhang, Y. L. 2002a. Leadership approaches and perceived leadership effectiveness in Chinese township and village enterprises. Journal of Asian Business, 17: 1–15.

    Google Scholar 

  • Fu, P. P., House, R., et al. 2002b. Study of Chinese business executives: A value-based approach. Paper presented at the Academy of Management Conference, Denver, Colorado.

  • Gillespie, N. 2003. Measuring trust in working relationships: The behavioral trust inventory. Paper presented at the Academy of Management Conference, Seattle, Washington.

  • Graen, G. B., & Uhl-Bien, M. 1995. Relationship-based approach to leadership: Development of leader–member exchange (LMX) theory of leadership over 25 years: Applying a multi-level multi-domain perspective. Leadership Quarterly, 6: 219–247.

    Article  Google Scholar 

  • Granovetter, M. 1985. Economic action and social structure: The problem of embeddedness. American Journal of Sociology, 91: 481–510.

    Article  Google Scholar 

  • Himes, G. K. 1980. Management leadership style. Supervision, 42: 9–12.

    Google Scholar 

  • House, R., Javidan, M., Hanges, P., & Dorfman, P. 2002. Understanding cultures and implicit leadership theories across the globe: An introduction to Project GLOBE. Journal of World Business, 37: 3–10.

    Article  Google Scholar 

  • Hui, C., & Graen, G. 1997. Guanxi and professional leadership in contemporary Sino-American joint ventures in mainland China. Leadership Quarterly, 8: 451–465.

    Article  Google Scholar 

  • Hui, C., Law, K. S., & Chen, Z. X. 1999. A structural equation model of the effects of negative affectivity, leader–member exchange, and perceived job mobility on in-role and extra-role performance: A Chinese case. Organizational Behavior and Human Decision Process, 77: 3–21.

    Article  Google Scholar 

  • Hui, C. H., & Tan, G. C. 1999. The moral component of effective leadership: The Chinese case. Advances on Global Leadership, 1: 249–266.

    Google Scholar 

  • Jehn, K. A., Chadwick, C., & Thatcher, S. M. B. 1997. To agree or not to agree: The effects of value congruence, individual demographic dissimilarity, and conflict on workgroup outcomes. International Journal of Conflict Management, 8: 287–305.

    Google Scholar 

  • Jöreskog, K. G., & Sörbom, D. 1993. LISREL 8 user’s reference guide. Chicago: Scientific Software.

    Google Scholar 

  • Jung, D. I., & Avolio, B. J. 2000. Opening the black box: An experimental investigation of the mediating effects of trust and value congruence on transformational and transactional leadership. Journal of Organizational Behavior, 21: 949–964.

    Article  Google Scholar 

  • Kenny, D. A., Kashy, D. A., & Bolger, N. 1998. Data analysis in social psychology. In Gilbert, D., Fiske, S. T., & Lindzey, G. (Eds.), Handbook of socialpsychology (4th ed.), 233–265. New York: McGraw-Hill.

    Google Scholar 

  • Klein, K. J., & House, R. J. 1995. On fire: Charismatic leadership and levels of analysis. Leadership Quarterly, 6: 183–198.

    Article  Google Scholar 

  • Konovsky, M. A., & Pugh, S. D. 1994. Citizenship behavior and social-exchange. Academy of Management Journal, 37: 656–669.

    Article  Google Scholar 

  • Kramer, R. M. 1995. Power, paranoia and distrust in organizations: The distorted view from the top. Research in Negotiations in Organizations, 5: 119–154.

    Google Scholar 

  • Krishnan, V. R. 2003. Power and moral leadership: Role of self–other agreement. Leadership & Organization Development Journal, 24: 345–351.

    Article  Google Scholar 

  • Kristof, A. L. 1996. Person-organization fit: An integrative review of its conceptualizations, measurement, and implications. Personal Psychology 49: 1–49.

    Article  Google Scholar 

  • Lau, D. C. 2001. Job consequences of trustworthy employees: A social network analysis. Doctoral dissertation, University of British Columbia, Vancouver.

  • Lewin, L., Lippitt, R., & White, R. K. 1939. Patterns of aggressive behavior in experimentally created social climates. Journal of Social Psychology, 10: 271–301.

    Article  Google Scholar 

  • Ling, W. Q., Chen, L., & Wang, D. 1987. Construction of CPM scale for leadership behavior assessment. Acta Psychologica Sinica, 2: 199–207.

    Google Scholar 

  • Liu, J. 2005. On the relationship between CEO value transmission strategies and follower attitudes: Do leader identity and follower power orientations matter? Doctoral dissertation, Chinese University of Hong Kong, Hong Kong.

  • MacKinnon, D. P., Lockwood, C. M., & Williams, J. 2004. Confidence limits for the indirect effect: Distribution of the product and resampling methods. Multivariate Behavioral Research, 39: 99–128.

    Article  Google Scholar 

  • Malhotra, D. 2004. Trust and reciprocity decisions: The differing perspectives of trustors and trusted parties. Organizational Behavior and Human Decision Process, 94: 61–73.

    Article  Google Scholar 

  • Malhotra, D., & Murnighan, J. K. 2002. The effects of contracts on interpersonal trust. Administrative Science Quarterly, 47: 534–559.

    Article  Google Scholar 

  • Mathieu, J. E., & Farr, J. L. 1991. Further evidence for the discriminant validity of measures of organizational commitment, job involvement, and job satisfaction. Journal of Applied Psychology, 76: 127–133.

    Article  Google Scholar 

  • Mayer, R. C., & Davis, J. H. 1999. The effect of the performance appraisal system on trust for management: A field quasi-experiment. Journal of Applied Psychology, 84: 123–136.

    Article  Google Scholar 

  • Mayer, R. C., Davis, J. H., & Schoorman, F. D. 1995. An integrative model of organizational trust. Academy of Management Review, 20: 709–734.

    Article  Google Scholar 

  • Mayer, R. C., & Gavin, M. B. 2005. Trust in management and performance: Who minds the shop while the employees watch the boss? Academy of Management Journal, 48: 874–888.

    Google Scholar 

  • McAllister, D. J. 1995. Affect- and cognition-based trust as foundations for interpersonal cooperation in organizations. Academy of Management Journal, 38: 24–59.

    Article  Google Scholar 

  • Meglino, B. M., & Ravlin, E. C. 1998. Individual values in organizations: Concepts, controversies, and research. Journal of Management, 24: 351–389.

    Article  Google Scholar 

  • Pillutla, M. M., Malhotra, D., & Murnighan, J. K. 2003. Attributions of trust and the calculus of reciprocity. Journal of Experimental Social Psychology, 39: 448–455.

    Article  Google Scholar 

  • Podsakoff, P., MacKenzie, S., Moorman, R., & Fetter, R. 1990. Transformational leader behaviors and their effects on followers’ trust in leader, satisfaction, and organizational citizenship behaviors. Leadership Quarterly, 1: 107–142.

    Article  Google Scholar 

  • Posner, B. Z., & Schmidt, W. H. 1992. Values and the American manager: An update updated. California Management Review, 34: 80–94.

    Google Scholar 

  • Prentice, D. A. 1987. Psychological correspondence of possessions, attitudes, and values. Journal of Personality and Social Psychology, 53: 993–1003.

    Article  Google Scholar 

  • Rokeach, M. 1979. Understanding human values. New York: Free.

    Google Scholar 

  • Salancik, G. R., & Pfeffer, J. 1978. A social information processing approach to job attitudes and task design. Administrative Science Quarterly, 23: 224–253.

    Article  Google Scholar 

  • Shah, P. P. 1998. Who are our social referents? A network perspective to determine the referent other. Academy of Management Journal, 41: 249–268.

    Article  Google Scholar 

  • Sitkin, S. B., & Roth, N. L. 1993. Explaining the limited effectiveness of legalistic “remedies” for trust/distrust. Organization Science, 4: 367–392.

    Article  Google Scholar 

  • Sosik, J. J. 2005. The role of personal values in the charismatic leadership of corporate managers: A model and preliminary field study. Leadership Quarterly, 16: 221–244.

    Article  Google Scholar 

  • Spreitzer, G. M. 1995. Psychological empowerment in the workplace: Dimensions, measurement, and validation. Academy of Management Journal, 38: 1442–1465.

    Article  Google Scholar 

  • Tajfel, H., & Turner, J. 1986. The social identity theory of intergroup behavior. In Worchel, S., & Austin, W. (Eds.), Psychology of intergroup relations, 7–24. Chicago: Nelson-Hall.

    Google Scholar 

  • Tan, H. H., & Chee, D. 2005. Understanding interpersonal trust in a confucian-influenced society: An exploratory study. International Journal of Cross Cultural Management, 5: 197–212.

    Article  Google Scholar 

  • Tsui, A. S., & O’Reilly, C. A. 1989. Beyond simple demographic effects: The importance of relational demography in superior–subordinate dyads. Academy of Management Journal, 32: 402–423.

    Article  Google Scholar 

  • Tucker, L. R., & Lewis, C. 1973. The reliability coeffieient for maximum likelihood factor analysis. Psychometrika, 38: 1–10.

    Article  Google Scholar 

  • Wang, H., Law, K. S., Hackett, R. D., Wang, D., & Chen, Z. X. 2005. Leader–member exchange as a mediator of the relationship between transformational leadership and followers’ performance and organizational citizenship behavior. Academy of Management Journal, 48: 420–433.

    Google Scholar 

  • Westwood, R. I., & Leung, S. M. 1996. Work under the reforms: The experience and meaning of work in a time of transition. In Westwood, R. I. (Eds.), China review, 363–423. Hong Kong: Chinese University Press.

    Google Scholar 

  • Xin, K. R., & Pearce, J. L. 1996. Guanxi: Connections as substitutes for formal institutional support. Academy of Management Journal, 39: 1641–1658.

    Article  Google Scholar 

  • Yukl, G. 2002. Leadership in organizations (5th ed.). Upper Saddle River, NJ: Prentice-Hall.

    Google Scholar 

  • Zand, D. E. 1972. Trust and managerial problem solving. Administrative Science Quarterly, 17: 229–239.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Management, Chinese University of Hong Kong, Shatin, Hong Kong

    Dora C. Lau & Ping Ping Fu

  2. Business School, Renmin University, Beijing, China

    Jun Liu

Authors
  1. Dora C. Lau
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Jun Liu
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Ping Ping Fu
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Dora C. Lau.

Appendix

Appendix

Measurement scales used in this study:

Feeling Trusted

  1. 1.

    Delegates important work to me

  2. 2.

    Empowering me with great decision-making power

  3. 3.

    Consults with me confidential information within my organization

  4. 4.

    Informs me his/her personal developmental plans

Values used in measuring Value Congruence

  1. 1.

    Employee orientation

  2. 2.

    Customer satisfaction

  3. 3.

    Impact on environment

  4. 4.

    Long-term competitive capability

  5. 5.

    Firm profitability

Moral Leadership Behaviors

  1. 1.

    Administers rewards in a fair manner

  2. 2.

    Uses a common standard to evaluate all who report to him/her

  3. 3.

    Ensures that his/her behaviors are moral

Autocratic Leadership Behaviors

  1. 1.

    Makes decisions in dictatorial way

  2. 2.

    Is a loner, tends to work and act separately from others

  3. 3.

    Tells subordinates what to do in a commanding way

  4. 4.

    Is inclined to dominate others

Rights and permissions

Reprints and Permissions

About this article

Cite this article

Lau, D.C., Liu, J. & Fu, P.P. Feeling trusted by business leaders in China: Antecedents and the mediating role of value congruence. Asia Pacific J Manage 24, 321–340 (2007). https://doi.org/10.1007/s10490-006-9026-z

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10490-006-9026-z

Keywords

  • Feeling trusted
  • Value congruence
  • Chinese managers