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Influence of Organizational Justice, Shared Values and Job Satisfaction on Innovative Behaviors in Small & Medium Venture Enterprises: Focusing on the Mediating Effect of Organizational Trust  

Lee, Chong Ik (The Graduate School of Venture, Hoseo University)
Ha, Kyu Soo (The Graduate School of Venture, Hoseo University)
Publication Information
Asia-Pacific Journal of Business Venturing and Entrepreneurship / v.13, no.2, 2018 , pp. 51-61 More about this Journal
Abstract
As Korean society becomes more matured, more people consider trust valuable, as a social capital. Researchers introduced trust literatures focusing on public policy, sociology than business. In this paper, it is empirically analyzed how Organizational Justice, Shared Values, Organizational Trust, 3 dimensions of social capital explained by Nahapiet & Ghoshall, together with Job Satisfaction and Innovative Behavior, as a proxy of performance at the organizational level. The results of this study are as below. Firstly Organizational Justice, consisted of 4 sub-variables of Distributional Justice, Procedural Justice, Interpersonal Justice and Informational Justice, classified by Colquitt, affects Job Satisfaction positively. Secondly Shared Values, consisted of 2 sub-variables of CEO's Core Value and Organizational Culture, availing Competing Value Model of Cameron & Quinn, affect Job Satisfaction positively. Thirdly Job Satisfaction, consisted of 2 sub-variables of economical satisfaction and self-efficacy, affects Innovative Behavior positively. Lastly Organizational Trust has mediating effect on the relationship between Job Satisfaction and Innovative Behavior. However, while the direct effect of Job Satisfaction on Innovative Behavior shows 69%, the indirect effect of Organizational Trust on Innovative Behavior shows 31%, which may not be ignorable. Furthermore in case of smaller organization with less than 30 members, the indirect effect of Organizational Trust shows 64%, comparing to 36% of direct effect of Job Satisfaction. This study was able to confirm that organizations need to maintain Organizational Trust as much as they strive to increase Job Satisfaction through securing Organizational Justice and Shared Values in order to effectively increase Innovative Behavior. For small organizations with less than 30 members, they can never achieve Innovative Behavior without Organizational Trust. Conclusively it is acknowledged that Organizational Trust is the most important prior condition for innovation and long-term survival of SME ventures.
Keywords
Organizational Justice; Shared Values; Job Satisfaction; Organizational Trust; Innovative Behaviour; Social Capital; SME Ventures; Entrepreneurship;
Citations & Related Records
Times Cited By KSCI : 2  (Citation Analysis)
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