How moral value (in)congruence shapes Chinese textile employees' trust & their firm's financial performance
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Supporting by the Moral Responsibility for Corporate Sustainability theory and Resource Advantage Theory of Competition, this study is aimed at examining the relationship between the moral value (in)congruence between textile manufacturing employees and their manufacturing firms toward corporate sustainability and its impact on employees' trust toward their manufacturing firms. Second, the study seeks to examine the relationship between employees' trust toward their manufacturing firms and its impacts on their perceived competitive advantage and financial performance of their manufacturing firms. Both research goals are tested in the Chinese textile industry setting in Zhejiang Province. The data analysis result shows a) a significant negative relationship between employees-organization moral value incongruence of labor relationship and employees' trust toward their firms; b) participants' trust as psychological capital was qualified to be considered as one of the firms' intangible resources, and positively assisted to gain perceived competitive advantage of their firms. c) a significant relationship between employees' perceived competitive advantage of their firms and perceived financial performance of their firms; d) participants' perceived competitive advantage of their firms fully mediates the relationship between their trust and perceived financial performance toward their firms. The finding from this study newly provides the definition of how employees-organization moral value incongruence influence employees' attitude toward their firms. the findings of this study indicate that the MRCS model can be useful for examining the relationship between employees-organization moral value incongruence and employees' attitudes toward their firms. The researcher recommends that future studies utilizes the MRCS model to analyze other value incongruence that exists between employees and organization or consumers and brands, which potentially influence employees' or consumers' attitudes toward the firms.
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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 License. Copyright held by author.