The Economic Consequences of Trust and Distrust in Knowledge-Intensive Organizations

Abstract

Studies measuring workplace trust in connection with leadership style and leader responsibility have become more and more important in recent years. Interest in the subject has been rising along with the recent introduction of knowledge management systems (KMSs), which has shown to be one of the most important factors of competitiveness. The aim of this research was to examine to what extent leaders of organizations are concerned about the presence of trust and/ or distrust, as well as about the economic consequences of trust and distrust. It also focused on solutions used in KMSs in knowledge-intensive organizations. Based on a model developed by the authors, the significance of a trust-based culture was examined from the viewpoint of economic consequences. Situations were analyzed in which, despite the existence of all knowledgerelated preferences, managers were not concerned about the economic consequences of trust or distrust. To test the system of relations in the model, a questionnaire survey was conducted in two neighboring European countries with different cultures. It has been found out that in most cases, there is a need for the building and/or use of a KMS at a strategic level. Appropriate tools are also used at an operative level (often spontaneously). However, trust as a general cultural prerequisite is often lacking. Businesses do not seem concerned about the consequences of trust and distrust, as related economic impacts are rarely quantified.