The mediating effect of trust on the relationship between high‐performance work systems and employee outcomes among Chinese indigenous firms

Abstract

In this article, we explore the mediating effect of trust on the relationship between high‐performance work systems (HPWS) and employee outcomes. Using a mixed method design, we first conducted focus groups and interviews to gain an understanding of the HPWS in Chinese indigenous firms. Extracting data from the interviews, we then developed a survey which tested our hypotheses. As predicted, data from 907 questionnaires illustrated that employees’ perceptions of the impact of enacted HPWS on building the trust relationship between manager/supervisor and employee in Chinese indigenous firms have a positive effect on employee job satisfaction and intention to stay. The results suggest that organisations may influence how employees perceive manager trustworthiness. It is likely that organisations can design systems that address employee needs, build trust, enhance employee satisfaction and deter them from leaving.