African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4194

Full Length Research Paper

Significant predictor and outcome of interpersonal trust: Empirical evidence from Pakistan.

  Muhammad Nisar1, Kashif-ur-Rehman2*, Tazeem Ali Shah1 and Ijaz-Ur-Rehman3  
  1International Islamic University, Islamabad, Pakistan. 2Iqra University, Islamabad, Pakistan. 3Shaheed Zulfikar Ali Bhutto Institute of Science and Technology (SZABIST), Islamabad, Pakistan.
Email: [email protected]

  •  Accepted: 19 December 2011
  •  Published: 07 March 2013

Abstract

 

The researchers and practitioners have recognized the importance of trust by considering it as an important factor for determining organizational success and employees’ well-being. The trust is a complex and multidimensional construct, a long debate is prevailing in literature regarding how trusting relationships can be created. The aim of this research is to add something to the trust literature, by finding out the significant predictors and outcomes. The second important purpose of this paper is to make it confirm that attributed charisma, inspirational motivation, intellectual stimulation, idealized influence, and individualized consideration are the important attributes of transformational leadership as reported by many renowned researchers. The total of 400 survey questionnaire were personally distributed among the respondents, of which 282 completed and ready to analysis were returned with a response rate of 70%. The entire hypotheses developed for study were supported by the empirical results. The structural equation modeling (SEM) results indicate that attributed charisma, inspirational motivation, intellectual stimulation, idealized influence and individualized consideration are attributes contributing towards transformational leadership. The survey questionnaire data also led to the findings that transformational leadership is a significant predictor of trust in managers and employees’ organizational identification is its significant outcome.

 

Key words: Trust, transformational leadership, organizational leadership, commitment.