The Impact of Institutional Governance on Firm Performance: The Trust-oriented Governance Perspective

Project: Research

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This study is to analyze the impact of trust-oriented governance in affecting firms’ business operations in the Chinese environment. Institutional governance, represented by legal norm, arbitrary and ethnic behavior, predominantly influence firms’ strategies for the development of new products and services, resource exploitation, cooperation and technology transformation. By manifesting the role of institutional foundations on firm performance, trust-oriented governance, guided by cohesive policies and decision-rights, defines the extent to which norms of trust can be used to encourage a firm to take more effective decisions. Firms must be fully aware of what governance assumptions are embedded in their administrative and cultural heritage. It is important to uncover how trust-oriented governance operates when dealing with the complimentary effects of control and trust by comparing contextual factors. This will enable us to investigate how the control/trust management orientation affects organizational competitiveness.


Project number7008141
Grant typeSRG
Effective start/end date1/05/126/05/15