The Moderating Role of Trust in Managers Between Strategic Innovation and Firm Performance

Abstract

The objective of this research is to emphasize the importance of trust in managers in moderating the relationship between strategic innovation and firm performance in Turkish service firms. The data was gathered at random from 340 employees. Structural Equation Modeling (SEM) was used to examine the data, which was done with the AMOS SPSS program. According to the study findings, there is a considerable association between trust in managers and firm performance, as well as strategic innovation and firm performance. The study also discovered that trust in managers acts as a moderator between strategic innovation and firm performance. This study adds to the advancement of scientific research, notably in terms of testing the model's content, as well as the variables and factors influencing them. Furthermore, this study demonstrated the need for firms to practice trust in management and strategic innovation in order to increase company performance. Strategic innovation and trust in managers are crucial to improving company performance, and high levels of strategic innovation may lead to higher firm performance, since service companies’ trust in managers is frequently more directly related to firm success. Additionally, managers should account for manager trust when examining the link between strategic innovation and firm performance.