An Investigation of The Relationship Between Organizational Trust and Loyalty in China's Largest Manufacturing Company

Abstract

Trust is widely regarded as a potent factor in attaining favorable individual and collective results. Prior studies have commonly categorised trust in business organizations into three distinct dimensions: trust in the organization itself, trust in managers, and trust in colleagues. The primary outcome variables that determine organizational trust are employee job satisfaction, organizational commitment, positive organizational behaviour, and high performance levels. Employee trust can foster emotional loyalty, continuous loyalty, and moral loyalty. We contend that trust exerts a significant influence on employee satisfaction, thereby fostering employee loyalty. This study aimed to examine the correlation between organizational trust and employee loyalty by conducting an employee loyalty survey in a prominent Chinese home appliance company. The statistical analysis conducted using SPSS software validated the correlation between organizational trust and employee loyalty, highlighting the significance of organizational trust in fostering employee loyalty particularly in manufacturing industry.