An Empirical Examination Of Organisational Trust Recovery: Influences And Implications

Husni Kharouf, Donald J. Lund

Research output: Contribution to journalArticle

Abstract

Building trust between organizations and their customers has attracted considerable academic research attention. However, research into the trust recovery process, following a trust violation has occurred is limited in comparison. This study investigates the trust recovery process by examining six recovery approaches which organizations can employ to repair trust. Six trust recovery approaches were first examined using canonical correlation. Our research investigates the impact of these six trust recovery approaches following two different types (integrity and competence) of trust violations. We assessed the influence of these approaches on customer loyalty, satisfaction and perceptions of organizational trustworthiness using structural equation modelling. Results suggest that apology and denial are the most effective approaches to repairing trust, and that the effect of these recovery approaches on customer satisfaction and loyalty are mediated by organizational trustworthiness.
Original languageEnglish
Pages (from-to)1115-1128
Number of pages14
JournalEuropean Management Review
Volume16
Issue number4
Early online date31 Jul 2018
DOIs
Publication statusPublished - 1 Dec 2019

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Organizational trust
Trustworthiness
Violations
Customer loyalty
Denial
Apology
Canonical correlation
Academic research
Integrity
Structural equation modeling
Customer satisfaction
Trust repair

Bibliographical note

This is the peer reviewed version of the following article: Kharouf, H & Lund, DJ 2018, 'An Empirical Examination Of Organisational Trust Recovery: Influences And Implications' European Management Review, vol (In-Press), pp. (in press), which has been published in final form at https://dx.doi.org/10.1111/emre.12309
This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.

Keywords

  • competence recovery
  • integrity recovery
  • Trust repair
  • trust violation
  • trustworthiness

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management

Cite this

An Empirical Examination Of Organisational Trust Recovery : Influences And Implications. / Kharouf, Husni; Lund, Donald J.

In: European Management Review, Vol. 16, No. 4, 01.12.2019, p. 1115-1128.

Research output: Contribution to journalArticle

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