The relationship between trust, HRM practices and firm performance

Research output: Contribution to journalArticlepeer-review


Numerous researchers have begun to examine organizational trust and its influence on the workforce. However, little empirical research has focused on the conditions that engender organizational trust - those that make managers more willing to accept the vulnerability inherent in certain managerial actions that are part of human resource management. This study evaluates the trust mechanism and the way HRM practices mediate its impact on improving organizational performance. One hundred and four HR managers from the leading companies in the Israeli industrial, service and trade sectors, based on sales and operating revenue, completed questionnaires. Overall,.we found that HR managers are more likely to offer training and shape the internal promotion system when trust is high. In addition, we found that firms exhibited higher organizational performance when trust is high. The paper also presents some of the model's implications.

Original languageEnglish
Pages (from-to)1600-1622
Number of pages23
JournalInternational Journal of Human Resource Management
Issue number9
StatePublished - Sep 2005


  • Human resource management
  • Performance
  • Trust

ASJC Scopus subject areas

  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management of Technology and Innovation


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