Abstract

This study is an empirical analysis of the factors influencing the trust in local public enterprises, conducted to ensure trust and to promote more community-friendly local public enterprises. For the empirical analysis of this study, communication factors and socio-economic benefits were set as independent variables, and residents’ participation factors were used as mediators. To verify the hypothesis of this study, a survey was conducted targeting residents over the age of 20 living in 16 cities, and 488 questionnaires were collected and used for empirical analysis.
 The empirical analysis results showed that communication factors, socio-economic benefits, and residents’ participation factors all significantly affect the trust in local public enterprises. Based on the empirical analysis results, there are a few steps that local public enterprises need to take in order to secure the trust of the residents. First, they need to establish a ‘citizen shareholder group’ where local residents can participate and provide opinions. Second, they need to prepare measures for co-prosperity cooperation with local residents for creating shared value (CSV). Lastly, not only should they prepare regular communication venues for communication with residents and development of co-prosperity cooperation, which are indicators of local public enterprise management evaluation, but also executives and members should make efforts for active co-prosperity activities and establishment of systems.

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