Trust chains in public sector organizations and their significance for work unit performance and employee turnover intention

Abstract

In this study, we propose that the concept of trust chains can be used to combine two influential traditions in organizational theory – Luhmann´s work on vertical trust and Putnam´s ideas on horizontal trust as a collective asset. Trust chains are then studied empirically by exploring how trust is assessed in the relationships between the employees in work units, the immediate managers, and the top management, including politicians and expert functions in a municipal organization. Aggregated data from questionnaires completed by 1,579 employees and their first-line managers in a Swedish municipality resulted in 126 work units. Cluster analysis identified five different configurations of trust chains with convergent and criterion validity. A solid trust chain with reciprocal links between employees in work units via layers of managers to the top management is clearly the most beneficial situation, while other configurations represent a variety of breaches, with less beneficial outcomes in terms of performance and turnover intentions.