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Job security and justice: predictingemployees' trust in Chineseinternational joint venturesYui-Tim Wong aa Department of Management , Lingnan University , Hong Kong ,P.R. ChinaPublished online: 06 Aug 2012.

To cite this article: Yui-Tim Wong (2012) Job security and justice: predicting employees' trust inChinese international joint ventures, The International Journal of Human Resource Management,23:19, 4129-4144, DOI: 10.1080/09585192.2012.703423

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Job security and justice: predicting employees’ trustin Chinese international joint ventures

Yui-Tim Wong*

Department of Management, Lingnan University, Hong Kong, P.R. China

This study examines the antecedents and consequences of employees’ trust in managementand trust in supervisor in Chinese international joint ventures. On the basis of socialexchange theory as paradigm, a model that links trust, job security and justice is developed.The proposed model considers job security and procedural justice as antecedents of trust inmanagement, and interactional justice as antecedent of trust in supervisor. It furthersuggests that trust in management affects employees’ turnover intention, and trust insupervisor affects employees’ organizational citizenship behaviour (OCB). A data setconsisting of 255 employees in three international joint ventures in China is used to test thehypotheses. The LISREL results support the hypotheses. Trust in management is found tohave a significant effect on employees’ turnover intention, whereas trust in supervisor isfound to have a significant effect on employees’ OCB. This study shows the practicalimplications for managers and supervisors for improving employees’ trust in Chineseinternational joint ventures.

Keywords: China; Confucian; job security; justice; organizational citizenship behaviour;Peoples’ Republic of China; trust; turnover intention

Introduction

Corporate social responsibilities (CSR) are significant in today’s world. The CSR policies

should not be formulated by companies only, but also be delivered to corporate employees.

Two types of factors have been found to have impact on employees’ motivation and

commitment to CSR ‘buy-in’ (Collier and Esteban 2007). The first set of factors is contextual.

For instance, employee attitudes and behaviour will be affected by whether CSR policies

(e.g. job security) are integrated into business processes. The second set of factors is

perceptual. For instance, employee motivation and commitment will be affected by their

perceptions of justice and fairness in general. Recent studies show that both job security and

perceptions of justice affect employees’ trust (Fonner and Roloff 2006; Stinglhamber, Cremer

and Mercken 2006; Dizgah, Farahbod and Khoeini 2011; Oh and Park 2011; Pillai, Kohles,

Bligh, Carsten and Brodowsky 2011; Wong, Wong and Ngo 2012). The researches of trust

have been conducted in different countries (Crawshaw and Brodbeck 2011; Dizgah et al.

2011; Raskovic, Brencic and Moerec 2011). Nevertheless, most of the past studies on trust

(e.g. Theron, Terblanche and Boshoff 2008; Dayan, Benedetto and Colak 2009), job security

and justice are conducted in Western countries. It is necessary to have more relevant studies in

different parts of the world to increase the generalizability of these findings. In recent decades,

more and more researches have been conducted in China. The majority of the researches in

the field of Chinese Human Resource Management (HRM) is focused on comparison

between HRM practices in various types of enterprises operating in China and those in the

ISSN 0958-5192 print/ISSN 1466-4399 online

q 2012 Taylor & Francis

http://dx.doi.org/10.1080/09585192.2012.703423

http://www.tandfonline.com

*Email: wongyt@ln.edu.hk

The International Journal of Human Resource Management,

Vol. 23, No. 19, November 2012, 4129–4144

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West. However, most of these studies help us have a better understanding of the latter rather

than the former. As China is rapidly becoming a key global player in recent years and the

Chinese enterprises represent an increasing share of the global market, it is crucial to

understand how Chinese firms and international joint ventures (IJVs) in China have managed

their employees at home and globally to achieve the performance outcomes (Lamond and

Zheng 2010). Given its unique cultural traditions (Earley 1989; Warner 1993, 1997, 2010)

and sweeping economic reform during the last few decades, Chinese IJVs provide a good

research setting to study the relationship of employees’ job security, justice and trust in the

workplace. It is because the employees in Chinese IJVs have inherited the Chinese culture of

justice and trust, and also encounter with the job insecurity problem in the changing business

environment in China today.

This study attempts to describe the constructs of trust in management and trust in

supervisor, presents a model that links the construct of trust in management with job security

and procedural justice, and links the construct of trust in supervisor with interactional

justice. It also examines the effects of trust on turnover intention and organizational

citizenship behaviour (OCB). Several hypotheses have been derived from the proposed

model. This study uses a data set consisting of 255 employees in three IJVs in the Peoples’

Republic of China (PRC) to test the hypotheses. In the next sections, concepts of trust in the

workplace and major forms of organizational justice will be discussed. After explaining the

methodology in details, the empirical results and analyses are presented. Finally, I will

conclude the study and discuss the practical implications for management deriving from the

results of this study.

Trust in management and trust in supervisor

Researchers have defined trust in different ways. According to Rousseau, Sitkin, Burt and

Camerer (1998), trust is viewed as ‘a psychological state comprising the intention to

accept vulnerability based upon expectations of positive intentions or behaviour of

another’. It can be viewed as a multidimensional construct that consists of different

elements (McCauley and Kuhnert 1992; Costigan, Itler and Berman 1998). For instance,

lateral trust involves ‘trusting’ relationship between the focal employees and co-workers,

and vertical trust refers to employee’s trust of his or her immediate supervisor and top

management. Ashford, Lee and Bobko (1989) and Fox (1974) consider trust belongs to an

institutional trust, which includes both employees’ trust in the employing organization and

trust of the top management. It should be noted that the concepts of trust in management

and trust in organization are often used interchangeably in the literature (e.g. Cook and

Wall 1980; Ashford et al. 1989). On the other hand, trust in supervisor refers to employee’s

trust in his or her supervisor (Podsakoff, Mackenzie, Moorman and Fetter 1990), which

belongs to a dyadic or interpersonal trust. This study focuses on two major types of vertical

trust within organization: trust in management and trust in supervisor.

Researchers have studied antecedents and consequences of trust in management and trust

in supervisor. For instance, Stinglhamber et al. (2006) investigate the relationship between

employees’ perceptions of procedural and interactional justice and their subsequent trust in

their management and supervisor. Farh, Tsui, Xin and Cheng (1998) examine trust in

supervisor with a sample of vertical dyads between supervisor and subordinate in Taiwan.

Erturk (2007) finds that trust in supervisor fully mediates the relationship between

organizational justice and OCB directed to the organization, but it partially mediates the

relationship between organizational justice and OCB directed to the individuals of Turkish

academicians. These two constructs of trust have been found to affect one’s OCB.

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For example, Deluga (1995) analyses the relationship between trust in the supervisor and

subordinates’ OCB in a military setting. Restubog, Hornsey, Bordia and Esposo (2008)

report that when employees are treated unfairly, they lose trust in the management, which in

turn results in less willingness on the part of the employees to engage in OCBs. Chiaburu and

Lim’s study (2008) also indicates that manager trustworthiness explains variance in OCBs

over and above the variance accounted for by interactional fairness.

Procedural justice and interactional justice

Two major forms of justice are considered in this study: procedural justice and interactional

justice. Procedural justice refers to the perceived fairness of the means used to determine

those amounts (Folger 1977). It is multidimensional and is related to the procedure used in

allocating resources (Thibaut and Walker 1975). Specifically, it is affected by two major

factors: formal procedures and interactional justice. Therefore, it can be further classified as

procedural justice/formal procedures and interactional justice (Greenberg 1990; Tyler and

Bies 1990). Interactional justice is the justice perceived by subordinates during the

interaction with their supervisors. It is related to the quality of treatment received from

supervisors (Bies and Moag 1986; Tyler and Bies 1990).

Research findings show that these two types of justice have different impact on trust.

For instance, Cropanzano and Folger (1991) find that procedural justice affects the

evaluation of the organization and its authorities (e.g. trust in management). Konovsky and

Pugh (1994) discover a very high correlation between the subordinates’ judgements of their

supervisor’s interactional justice and their trust in the supervisor. Rupp and Cropanzano

(2002) report that justice from organizations is associated with outcomes relevant to the

organization (e.g. organizational citizenship behaviours to the organization) and that justice

from supervisors is related to outcomes relevant to the supervisor (e.g. organizational

citizenship behaviours beneficial to the supervisor).

Chinese trust and justice

From a cultural perspective, Chinese people have the characteristics of Confucianism with

emphasis on harmony, reciprocity and loyalty (Warner 1993, 2010). These cultural

characteristics have a positive impact on employees’ trust. Studies show that Chinese people

are group oriented (Wang 1990), and oriented towards enhancing in-group harmony

(Leung and Bond 1984). Long-term and good interpersonal relationships have been highly

valued by Chinese. Despite Maoism (which emphasizes on egalitarian values), many

Confucian values (which emphasize the structure of hierarchy and paternalistic authority)

remain strong in today’s China (Bond and Hofstede 1989). The Confucian traditions of

social duty and obligation may lead to an emphasis on employees’ respect to authority and

loyalty at work. These cultural values and beliefs have important bearings on the

development of employees’ trust in the workplace (Farh, Hackett and Liang 2007). In the

Chinese society, the Chinese word of ‘trust’ (i.e.hxin) is closely related to ‘faith’ (i.e. cheng).

‘Hxin’ has the meanings of faith, sincerity, truthfulness and trust; while ‘cheng hxin’ has the

meanings of good faith and honesty. For instance, trusting a person implies having a faith in

the person without doubt. The words and concepts of ‘cheng’ and ‘hxin’ are closely used,

and can be easily found in the Analects of Confucius. Justice and trust (i.e. ‘cheng and hxin’)

are important and interrelated in both traditional China and contemporary Chinese daily life.

The concept of organizational justice is unique and salient in Chinese society

(Zhang and Agarwal 2009). Hwang (2000) stated that: Confucius advocated that procedural

justice in social connection should follow the ‘principles of respecting the superior’ (p. 168).

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So, it can be seen that such ethical guidelines for justice have been dwelt on in the ancient

Chinese wu-lun principles (i.e. emperor–subject, father–son, husband–wife, elder–

younger and friend–friend). Such concepts should have important implications for Chinese

employees’ perceptions and behaviour. The social role and status of the resource allocator

and recipient are likely to affect the evaluation and perceptions of fairness among Chinese

(Meindl, Hunt and Cheng 1994). As Hui and Graen (1997) report that Confucianism

supported feudal/family-based relationship have impacts in building successful

organizational cultures in contemporary China, it is reasonable to expect that both

procedural justice and interactional justice among Chinese employees will affect their trust

in the workplace.

IJVs in China

IJV has become a major form of foreign investment in China, since China adopted Deng

Xiaoping’s open-door economic policy. Deng insisted: ‘Reform is China’s second revolution’

(Deng 1994, v. 3, pp. 119–120). His thinking can be better understood from his wisdom:

‘It doesn’t matter if a cat is black or white, so long as it catches mice’ (Deng 1994, v. 1,

pp. 292–296). The management and governance structure of IJVs are remarkably different

from those of state-owned enterprises. There are several characteristics of IJVs in China.

First of all, the creation of IJV is subject to government pressures and often includes

government partners. They are also often formed with partners from ethnically related

countries (Beamish 1993). Second, Western ‘mainstream practices’ in HRM such as formal

performance appraisal, performance-based compensation and extensive training had been

widely adopted in most of the IJVs. (Warner 1997; Ding, Akhtar and Ge 2006; Wei and Lau

2008). Moreover, redundancies and dismissals are also practiced in IJVs (Warner 1997). Thus,

the employment conditions of workers in IJVs differ significantly from that in state-owned

enterprises (Chow, Fung and Ngo 1999).

Hypotheses

Social exchange theory will be used to provide theoretical support for the paradigm of the

proposed model. In the past, social exchange theory was used to explain the link between

employees’ perceptions of the workplace and their subsequent work attitudes and behaviour

(Eisenberger, Fasolo and Davis-LaMastro 1990; Settoon, Bennett and Liden 1996;

Wayne, Shore and Liden 1997). Following the work of Blau (1964), social exchange theory

assumes that individuals’ social interactions are driven by rational self-interest

(Witt, Jacmar and Andrews 2001). Individuals will enter and remain in exchange

relationships as long as the costs in such relationships do not outweigh their benefits

(Tyler and Lind 1992). In a social exchange, one party provides a benefit to another party,

thus invoking an obligation in the other party to reciprocate by providing a benefit in return.

The norm of reciprocity and mutual commitment is developed during the process of

social exchange. Social exchange theory further postulates that trust emerges through the

repeated exchange of benefits between two parties, which in turn affects employee

outcomes (Aryee, Budhwar and Chen 2002).

According to social exchange theory, organizations are forums for exchange and

transactions (Cropanzano, Howes, Grandey and Toth 1997; Randall, Cropanzano,

Bormann and Birjulin 1999). There are at least two important exchange partners in an

employee’s workplace: the employee’s immediate manager and the employee’s

immediate supervisor. The ways that employees interact with these two partners have

an important bearing on their work-related attitudes and behaviour. For example, when the

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management provides a sufficient level of job security to his or her workers, the workers

are likely to display positive job attitudes, such as a high level of trust in management.

Likewise, when a supervisor provides justice to his or her subordinates at work, the

subordinates are more likely to have trust in supervisor. On the basis of social exchange

theory, a number of hypotheses are developed as follows.

Antecedents of trust in management and trust in supervisor

Job insecurity has become a concern for workers in Chinese joint ventures today. Zhu (1995)

finds that local employees in foreign-invested enterprises are typically blue-collar workers.

Most of them are employed as either contract workers or temporary workers. As compared

to permanent workers, contract workers and temporary workers have less job security.

In particular, those workers who do not have the ability to cope with the job requirements

may perceive a high level of job insecurity. The expected positive effect between job

security and trust in management is theoretically grounded in the psychological contracts

literature. Given that employees have implicit expectations about job security (Shore and

Tetrick 1994), a perceived threat to job security implies a possible violation of the

psychological contract. Since perceived violations of the psychological contract trigger

reassessment of the contract, the psychological distancing can be manifested in terms of a

reduction of trust between the parties (Parks and Kidder 1994). Ashford et al.’s study (1989)

shows that the greater the perceived job insecurity is, the lower the trust in management will

be. Fonner and Roloff (2006) also find that student interns exposed to job insecurity expect

low trust to the management. Thus, it is hypothesized that:

Hypothesis 1: Employees in IJVs with higher levels of perception of job security have

higher levels of trust in management.

Procedural justice has been found to affect the evaluation of an organization and its

authorities (Cropanzano and Folger 1991; Sweeney and McFarlin 1993), and thus it may

have effect on the trust in management. Folger and Konovsky (1989) report that

procedural justice predicts trust in manager. Rubin (2009) finds that federal employees’

perception of procedural justice has significant effect on their trust in management in the

USA. Dizgah et al. (2011) report that there is a positive relationship between procedural

justice and trust in organization. Wong et al. (2012) also find that procedural justice has a

positive and significant impact on trust in organization in Chinese joint ventures. On the

basis of the justice literature, it is reasonable to expect that employees will have a high

level of trust in management, if fair procedural treatment is guaranteed. As IJVs in China

tend to employ fairer procedures in allocating the material rewards, a higher level of

perception of procedural justice among employees will increase their trust in management.

Thus, it is hypothesized that:

Hypothesis 2: Employees in IJVs with higher levels of perception of procedural justice

have higher levels of trust in management.

Procedural and interactional justice have been distinguished from one another by using

the social exchange theory. Cropanzano, Prehar and Chen (2002) report that procedural

justice should be more closely associated with reactions towards upper management and

organizational polices, whereas interactional justice should be more closely associated

with reactions towards one’s supervisor. Studies also show that perceived interactional

justice directly affects trust in supervisor. Konovsky and Pugh’ study (1994) discovers a

very high correlation between subordinates’ judgements of their supervisor’s interactional

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justice and their trust in supervisor. Dizgah et al.’s (2011) report shows that there is a

positive relationship between interactional justice and trust in supervisor. Given such a

relationship, it is logical to expect that subordinates’ perceived interactional justice of their

supervisor directly affects their trust in supervisor in Chinese IJVs. Hence, it is

hypothesized that:

Hypothesis 3: Employees in joint ventures with higher levels of perception of inter-

actional justice have higher levels of trust in supervisor.

Under the economic reform in China, team approach has become a major HRM

strategy adopted by IJVs (Wang 1986, 1988). The team approach emphasizes efficiency,

group responsibility and authority with collective interests. Given the responsibilities of

supervisors as well as their frequent and direct interaction with their subordinates,

supervisors largely represent the management to the employees. Hence, subordinate

employees often consider their supervisors as ‘representatives’ of the management.

Zhang, Tsui, Song, Li and Jia’s study (2008) shows that supervisor support is important in

creating trust to the middle management in China. It is therefore hypothesized that:

Hypothesis 4: Employees’ level of trust in supervisor is positively associated with their

level of trust in management in IJVs.

Consequences of trust in management and trust in supervisor

Turnover intention can be considered as ‘a conscious and deliberate wilfulness to leave the

organization’ (Tett and Meyer 1993, p. 262). It is often measured with reference to a

specific interval, and has been regarded as the last stage in a sequence of withdrawal

cognitions, consisting of a set of thinking of quitting and an intent to search for alternative

employment (Tett and Meyer 1993). Costigan et al. (1998) report that employee’s trust of

the top management was highly and negatively correlated with the employee’s desire and

intent to leave the organization. Among various reasons that may affect employees’

turnover intention, trust in top management has been found to be a key factor in the study

of restaurant industry (Davies, Schoorman, Mayer and Tan 2000). After the open-door

policy with substantial inflow of foreign investment, IJVs and foreign-owned firms have

become economically significant in China (Zhu 1995). Moreover, other forms of

enterprises such as collective ownership enterprises and domestic private enterprises have

also increased both in number and size. These changes have not only increased the job

opportunities for Chinese workers, but also increased their turnover intention. In view of

these findings, it is hypothesized that:

Hypothesis 5: Employees’ trust in management will have a significant and negative

effect on employees’ turnover intention in IJVs.

According to Meyer and Allen (1997), organizational citizenship behaviour measures

typically include things such as ‘providing extra help to co-workers, volunteering for

special work activities, being particularly considerate of co-workers and customers, being

on time, and making suggestions when problems arise’ (p. 33). Therefore, it includes

work-related behaviour that ‘goes above and beyond’ the behaviour dictated by

organizational policy and job description. Deluga (1994) argues that supervisor’s trust-

building behaviour is closely associated with OCB. Dyne, Vandewalle, Kostova, Latham

and Cummings (2000) also report that individual’s propensity to trust will have a positive

relationship with the subsequent organizational citizenship in a housing cooperative

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setting. Hence, it is reasonable to anticipate that joint-venture employees’ trust in

management and trust in supervisor will have a positive effect on their OCB. Since

workers generally have more frequent and direct interaction with their supervisors than the

top management, it is therefore hypothesized that:

Hypothesis 6a: Both employees’ levels of trust in management and trust in supervisor

have a positive effect on employees’ OCB in IJVs.

Hypothesis 6b: Employees’ level of trust in supervisor has a stronger effect on

employees’ OCB than that of trust in management in IJVs.

Chinese employees in joint ventures today no longer enjoy the so-called ‘iron rice

bowl’. A joint venture has the right to lay off workers whose performance is poor. It can also

fire undisciplined workers or those who have committed offences. As such, job security

becomes a concern for workers employed in joint ventures. This in turn will increase joint

venture employees’ turnover intention. Research findings show that job security is

negatively correlated with intention to quit (Ashford et al. 1989; Allen, Freeman, Russell,

Reizenstein and Rentz 2001; Joarder and Sharif 2011). Wong, Ngo and Wong (2002) also

report that workers’ perceived job security affect their turnover intention in Chinese joint

ventures. Hence, it is hypothesized that:

Hypothesis 7: Employees’ perceived job security has a significant and negative impact

on their levels of turnover intention in IJVs.

Methods

Sample and procedures

The sample for this study was composed of 255 employees in three joint-venture factories.

Data were collected from production officers, front-line supervisors, technical workers and

administrative staff in three factories in Guangdong Province, a southern province in the

PRC that has witnessed considerable economic growth in the last two decades. These three

factories manufacture shoes and footwear. The sample of employees was 38% male and

62% female with a mean age of approximately 25.6 years. Sixty-one percent of the sample

was married. The average job tenure for the sample was 30 months. Short job tenure is

typical of the region. In this sample, 20% of the employees are local workers, 10.6% are

coming from other cities of Guangdong and 69.4% coming from other provinces.

Data collection involved a number of personal trips by the author to each data

collection site. During the first two trips, the production managers, production officers,

supervisors and technical workers in three factories in the sample were interviewed to gain

a better understanding of the factories under study. This was done to ensure that a

questionnaire relevant to the sample could be created. After designing the questionnaire, a

pilot test consisted of 20 subordinates and 5 supervisors was conducted in these factories

with the aim of determining the appropriateness of the contents, the proper use of words,

the ease of understanding and any modifications needed. During the following trips, with

the assistance of one staff in each factory, the author collected the research data in these

three joint venture factories. On the basis of the name lists of all staff and workers of these

factories, the respondents and their immediate supervisors were identified in advance by

the systematic sampling method. Questionnaires were distributed personally to each

respondent. To assure all respondents that individual responses would not be revealed to

members of their working unit, the questionnaires for subordinates were collected

immediately after completion. Researchers then approached their supervisors for

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completing the part of the assessment of their subordinates’ OCB. Both the subordinates

and the supervisors were assured that the information collected would be kept confidential.

Responses regarding trust in management, trust in supervisor, job security, procedural

justice, interactional justice and turnover intention were obtained from participants.

The immediate supervisors of these participants were asked to evaluate their subordinates’

levels of OCB to avoid the problem of ‘common method variance’. The survey

questionnaires were written in Chinese. To ensure equivalence of the measures in the

Chinese and the English versions, back-translation from Chinese into English was first

performed (Brislin 1970). The two translations revealed no substantial differences in the

meanings of the items. Two local research assistants, both hold a university degree in English

from Chinese universities, reviewed all Chinese translation to ensure that the meaning of the

questionnaire is clear to Chinese participants. Finally, Chinese version of the questionnaires

was examined by two Chinese scholars in Hong Kong. All items were modified to fit into the

five-point Likert-scale format (e.g. 1 ¼ extremely disagree, 2 ¼ slightly disagree,

3 ¼ neither agree nor disagree, 4 ¼ slightly agree and 5 ¼ extremely agree).

Measures

Trust in management

It was measured by the six-item scale on trust in management developed by Cook and

Wall (1980) with some modifications to render the items more appropriate for the Chinese

context. An example of these items is: ‘Our management would not gain advantage by

deceiving the workers’. Coefficient a of the sample is 0.75.

Trust in supervisor

Four items from trust in/loyalty to the Leader scale (Podsakoff et al. 1990) were selected

for this study. The four items are: ‘I have complete faith in the integrity of my supervisor’;

‘My supervisors would not try to gain an advantage by deceiving employees’; ‘I feel a

strong loyalty to my supervisor’; and ‘I would support my supervisor in almost any

emergency’. Coefficient a of the sample is 0.72.

Perceived job security

The four items used by Caplan, Cobb, French, Van Harrison and Pinneau (1975) were

modified and adopted. The responses were obtained on a five-point Likert scale ranging

from extremely certain (5) to extremely uncertain (1). An example of item is: ‘How certain

are you about your job security in this factory?’ Coefficient a of the sample is 0.71.

Procedural justice

The four items used by Balkin and Gomez-Mejia (1990) were modified and adopted. An

example item is: ‘Managers at all levels participate in pay and performance appraisal

decisions’. Coefficient a of the sample is 0.72.

Interactional justice

Six items used by Moorman (1991) were modified and adopted. An example item is: ‘Your

supervisor treated you with kindness and consideration’. Coefficienta of the sample is 0.80.

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Turnover intention

The three-item measure of intention to change jobs from Camman, Fichman, Jenkins

and Klesh (1979) was modified and adopted in this study. The three items are: ‘I often

think about quitting’, ‘I will probably look for a new job in the next year’ and ‘ If I may

choose again, I will choose to work for the current organization’. Coefficient a of the

sample is 0.72.

Organizational citizenship behaviour (OCB)

A scale with 22 items used by Farh, Earley and Lin (1997) were modified and adopted.

An example item is: ‘Willing to stand up to protect the reputation of the company’.

Coefficient a of the sample is 0.83.

Results and analyses

A preliminary examination of the correlation in Table 1 indicates that trust in management

and trust in supervisor correlate significantly with their antecedents. For instance, job

security is significantly related to trust in management (r ¼ 0.38, p , 0.01), procedural

justice is significantly and positively related to trust in management (r ¼ 0.36, p , 0.01),

and interactional justice is significantly and positively related to trust in supervisor

(r ¼ 0.57, p , 0.01). All the hypotheses for the proposed model are shown in Figure 1.

LISREL 8.52 (Joreskog and Sobrom 2002) was used to test the proposed model. All in all,

LISREL analysis shows that the proposed model is supported by empirical results.

The goodness-of-fit statistics indicated that all the fit indexes for the proposed model are

satisfactory and well above 0.90 (i.e. GFI ¼ 0.99; CFI ¼ 0.99; and IFI ¼ 0.99).

Testing the antecedents of trust in management and trust in supervisor

As regard to the antecedents of trust, it is found that job security has a positive effect on

trust in management (b ¼ 0.35, p , 0.01), and procedural justice has a significant effect

on trust in management (b ¼ 0.24, p , 0.01); while interactional justice has a significant

effect on trust in supervisor (b ¼ 0.74, p , 0.01). Thus, Hypotheses 1, 2 and 3 are all

supported. In addition, trust in supervisor is significantly and positively related to trust in

management (b ¼ 0.41, p , 0.01). Therefore, Hypothesis 4 is also supported.

Testing the consequences of trust in management and trust in supervisor

Hypothesis 5 states that the employees’ trust in management has a negative effect on their

levels of turnover intention. As Figure 1 shows, trust in management is negatively related

to employees’ turnover intention (b ¼ 20.31, p , 0.01). This finding supports

Hypothesis 5. On the other hand, Hypothesis 6a states that the both employees’ levels

of trust in management and trust in supervisor have a positive effect on their level of OCB.

And Hypothesis 6b states that the employees’ level of trust in supervisor has a stronger

effect on their level of OCB than trust in management. As Figure 1 shows, trust in

management is positively related to employees’ OCB (b ¼ 0.15, p , 0.05), while trust in

supervisor is found to have a stronger effect on employees’ OCB (b ¼ 0.41, p , 0.01)

than trust in management. These findings support both Hypotheses 6a and 6b. In addition,

Hypothesis 7 states that employees’ perceived job security has a negative effect on their

levels of turnover intention. As Figure 1 shows, employees’ perceived job security is

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Tab

le1

.D

escr

ipti

ve

stat

isti

csan

dco

rrel

atio

ns.

Variables

Mean

SD

12

34

56

7

1.

Tru

stin

man

agem

ent

3.5

20

.62

(0.7

5)

2.

Tru

stin

sup

erv

iso

r3

.73

0.6

10

.42

**

(0.7

2)

3.

Job

secu

rity

2.9

60

.74

0.3

8*

*0

.18

**

(0.7

1)

4.

Pro

ced

ura

lju

stic

e3

.30

0.7

60

.36

**

0.2

7*

*0

.22

**

(0.7

2)

5.

Inte

ract

ion

alju

stic

e3

.51

0.6

80

.52

**

0.5

7*

*0

.28

**

0.4

6*

*(0

.80

)6

.T

urn

ov

erin

ten

tio

n2

.44

0.6

62

0.3

1*

*2

0.1

8*

*2

0.2

9*

*2

0.1

9*

*2

0.1

3*

(0.7

2)

7.

Org

aniz

atio

nal

citi

zen

ship

beh

avio

ur

3.6

40

.37

0.3

0*

*0

.41

**

0.1

7*

*0

.20

**

0.2

7*

*2

0.2

7*

*(0

.83

)

No

te:

Rel

iab

ilit

yco

effi

cien

tsar

ere

po

rted

inp

aren

thes

eso

nth

ed

iago

nal

.

*p,

0.0

5;

**p,

0.0

1.

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negatively related to employees’ turnover intention (b ¼ 20.23, p , 0.01). This finding

supports Hypothesis 7.

Discussion and conclusion

The study of trust in management and trust in supervisor are important for understanding the

work behaviour of Chinese employees. However, limited studies have been done on their

antecedents and consequences of these two types of trust simultaneously. The antecedents

and consequences of employees’ trust are examined in this study. In specific, I postulate that

both employees’ perceived job security and procedural justice affect their trust in

management, which in turn has a negative effect on employees’ turnover intention. In

addition, I highlight the role of trust in supervisor, because Chinese employees value social

relationship with supervisor at work. Hence, employees’ trust in supervisor will be

influenced by their perceived interactional justice in supervisor. Furthermore, employees’

trust in supervisor will affect their trust in management and OCB. All these hypotheses are

confirmed empirically in this study.

This study endeavours to make theoretical contributions to the existing literature. It

also has some implications for future research. For instance, it enhances our understanding

of the role of trust in management and trust in supervisor of Chinese employees.

In particular, it is the first study that examines the relationships among employees’ trust,

perceived justice and OCB in the Chinese context. By doing so, one can understand more

about how employees’ perceived justice affects employees’ job attitude and behaviour at

work. The effects of these relationships and attitudes should be emphasized in future study

of organizational behaviour in China.

Practical implications

By knowing how the perceived justice could affect trust in management and trust in

supervisor, management can take appropriate actions to improve human relations at work.

It has been shown that a higher level of trust in management is observed when employees

have a higher level of perceived job security and procedural justice, and a higher level of

trust in supervisor is closely related to a higher level of interactional justice. Given these

H7

H5

H6A

H6H3

H2

H1

H4

–0.23**

–0.31**+0.35**

+0.24**+0.41** +0.15*

+0.74**+0.41**

Jobsecurity

Proceduraljustice

Interactionaljustice

Trust inmanagement

Trust in supervisor

Turnoverintention

Organizationalcitizenshipbehaviour

Figure 1. Theoretical model and hypotheses.Note: *p , 0.05; **p ¼ ,0.01.

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findings, management should promote procedural justice and interactional justice among

management and supervisors to achieve desirable outcomes. This study also shows that

CSR has its practical implications. For instance, in the contextual aspect of CSR, job

security should be integrated into companies’ CSR policies. In the perceptual aspect of

CSR, procedural justice and interactional justice should be emphasized to get their impact

on employees’ trust to CSR ‘buy-in’ (Collier and Esteban 2007). In addition, the past

research findings shows that trust in supervisor is important in creating trust to the

management in China (Zhang et al. 2008). This finding obtains further support in this

study. It also implies that the daily communication and interactional justice between

subordinates and supervisor are important in the workplace.

Moreover, the findings regarding consequences of employees’ trust in supervisor and

trust in management have practical implications for managing extra-role behaviour

problem of employees through fostering trust in supervisor and management, as this policy

helps to develop employees’ OCB. In addition, both trust in management and perceived

job security have been found to decrease employees’ turnover intention. It implies that the

integration of job security into companies’ CSR policies has the dual benefits of improving

the trust in management and reducing the staff turnover problem.

Limitations and future research

Several limitations concerning this study need to be noted. First of all, both the scales of

trust in management and trust in supervisor are developed in Western setting. However,

like non-indigenous scales, these two scales may not be able to capture their full meaning

in the context of China. I noted that their a coefficients are not very high in this study. It is

therefore suggested to refine these concepts in the future. Second, the majority of the

subjects in this study are lower-level workers, and most of them do not involve in decision

making. They may not have a complete understanding of the meaning and experiences of

procedural justice and interactional justice. Thus, the findings of this study should not be

overgeneralized to other settings. Third, the sample of this study comprised 255 workers in

three IJVs in Guangdong Province. As such, one limitation of the current study lies with

the nature of the sample that the majority of the subjects are workers from other provinces.

Due to their high geographical mobility, it is difficult for them to develop high level of

trust in supervisor and trust in management. Thus, more studies need to be conducted to

compare the job attitude and behaviour of different types of workers in China in the future.

All in all, this study demonstrates that, due to the influence of traditional Chinese

culture, Chinese employees emphasize trust in the workplace. Although my findings have

to be cross-validated by larger samples in different cultural and organizational settings,

results of this study clearly indicate that trust in management and trust in supervisor,

deserve more research attention in future studies of OCB. Furthermore, more studies

should explore the effects of trust in supervisor on other employee outcomes, such as job

satisfaction and work commitment that I have not examined in this study.

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