Loyalty to supervisor and trust in supervisor of workers in Chinese joint ventures: a test of two competing models

Abstract

This study examines the factors affecting joint venture employees' loyalty to supervisor in the People's Republic of China. The trust framework and justice framework are employed to develop two competing models for studying the antecedents and consequences of loyalty to supervisor in the context of Chinese joint ventures. The direct effect model proposes that there is a direct effect of employees' perception of interactional justice and of trust in supervisor on their loyalty to supervisor, while the mediation model considers trust in supervisor as a mediating variable between interactional justice and loyalty to supervisor. Additionally, the two models suggest that loyalty to supervisor affects the in-role job performance and organizational citizenship behaviour of workers. The results showed that the mediation model was better supported than the direct effect model. It has been found that trust in supervisor mediates the relationships between interactional justice and loyalty to supervisor. In addition, loyalty to supervisor has significant effects on both employees' performance and organizational citizenship behaviour. Practically, the findings of the present study provide considerable implications for managing Chinese workers in joint ventures.