Title: Investigating interpersonal trust determinants in Western companies' subsidiaries: empirical evidence

Authors: Unggul Purwohedi; Bruce Gurd

Addresses: Faculty of Economics, Department of Accounting, Universitas Negeri Jakarta, Jakarta 13220, Indonesia ' School of Management, University of South Australia, Adelaide, SA 5001, Australia

Abstract: This study focuses on trust on supervisor (interpersonal trust) building among staff in the subsidiary of a multinational company. We investigate an antecedent of trust in performance evaluation and the interaction between national and organisational culture. We surveyed employees and managers across all departments of three multinational companies operating in Indonesia. We find that national culture dimensions affected different orientations of organisational practices across all levels, but especially for the employee vs. job orientation culture. Formality of performance evaluation will increase trust of supervisors among local subsidiary members. Potential implications for optimising the role of local managers in MNC and performance evaluation implementation are discussed.

Keywords: national culture; organisational culture; performance evaluation; multinational corporations; interpersonal trust; MNC subsidiaries; MNCs; Indonesia; supervisors.

DOI: 10.1504/JGBA.2016.074893

Journal for Global Business Advancement, 2016 Vol.9 No.1, pp.18 - 37

Available online: 22 Feb 2016

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