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The purpose of this paper is to explore a stakeholder trust model of organizations and applies the model to diagnose the loss of trust in large banks (Universal and Investment Banks) after the global financial crisis (GFC). Prescriptions for the repair of trust are offered along with the diagnosis.

The theoretical underpinnings of the stakeholder trust model of organizations are supported using the literature in marketing and management. Case study data on large and community banks are used to explore differences in these type of banks as they relate to trustworthiness as articulated in the stakeholder trust model of organizations.

The stakeholder trust model of organizations and six dimensions of trustworthiness help to explain why trust eroded in large banks during the GFC but increased or remained stable among some community banks. This diagnosis of the loss of trust also points to interventions that will be necessary to restore trust going forward among large banks.

Scholars in marketing need to develop a more macro view of the firm that examines trust beyond customers to reflect a wider stakeholder focus and issues of corporate social responsibility, trust reputation and license to operate.

This paper points out strategic changes, some of which are radical, that will be required to restore and sustain stakeholder trust in large banks.

Building trustworthy banks is essential to social and economic progress.

This paper addresses a void in marketing research by moving beyond the product and transactional level focus and framing a more macro oriented approach to understand trust in banks.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

Trust in financial institutions has been eroded through the collapse of mortgage-related securities, with confidence further denuded through well publicized cases of rogue traders and rate fixing cases, such as with the Lehman brothers, the Libor rate-fixing scandals, and the hypo real estate breakdown. In response to these events, governments have introduced a range of distinct policy initiatives designed to restore trust in this sector. Thus, the question arises: are these regulations and control mechanisms sufficient in isolation, or are there other elements that this sector needs to pay attention to in efforts to build and sustain customers’ trust? The paper aims to discuss these issues.

There is a compelling agenda for both financial organizations and academics to understand better organizational trust in this context especially the role and impact of regulatory mechanisms in its development and repair. The paper therefore examines the special facets of the financial services sector in comparison to other sectors, such as manufacturing, to consider whether trust is fundamentally different in this context than others, and thus address how far there are special challenges concerning trust and the banking industry. The paper analyses, by using a meta-analytical design, 93 studies (N=38,631), of which 20 empirically investigate organizational trust in the financial sector with a combined N of 11,224 respondents.

The paper shows that the banking sector is heavily affected by two distinct forces: first, customers’ perception of an organization's level of compliance and conformity with laws and regulations is a necessity for banks’ sociopolitical legitimization, and second it is also related to how non-compliance is dealt with. Importantly, this meta-analysis indicates that regulation is just one of a suite of devices that organizations need to deploy in their efforts to restore trust. The paper identified two further elements of significance: customers require direct evidence, derived either from their own or others’ satisfaction with the goods or services provided, and customers do take note of the external endorsement of the firm, especially in Asia, where customers place huge emphasis on the firm's reputation.

First, meta-analysis is inherently reliant on the earlier studies and therefore retains their weaknesses. Some of the relationships included self-report variables collected at the same point in time and therefore may be inflated by common method bias. Second, due to the focus and because of the limited number of studies in this sector, and a paucity of attention on some key topics, such as perceptions of regulation, second-order sampling error may also be a limitation. Third, some relationships were not investigated frequently enough in studies to enable us to include them in the review, such as cooperation, opportunistic behaviour or quality. Finally, despite calls for trust scholars to include propensity to trust measures within their studies, many of these studies do not include this measure and therefore it is more difficult to identify and control individual difference factors.

The results show the merit of multi-strand trust development strategies. There is a striking paucity of financial institutions, which have examined how far their trust deficit may be related to their internal culture, and whether recent corporate corruption could be the product of bonuses and the internal short-term individualized reward systems. The analysis reveals that although external regulations and controls are an effective and powerful devise for organizational trust, over the last two periods of significant crisis, their impact appears to be warning; Yet reassuring customers of their expectations of the other party's future behaviour is central to trust. Alternative remedies need to be considered, such as the establishment of a more effective regulator, or board of governors who oversee and assure compliance. Monitoring and surveillance offer a further external means of reducing the possibility of future misbehaviours. However, as the analysis indicates, other strands are required to build trust, including greater attention by firms on customers’ direct experiences, which in turn would enhance the third part endorsement of their competence and goodwill intentions of organizations.

Significantly, the results indicate the potentially partial erosion of credence factors, and thus confidence, in this sector over the last 20 years, during what has been a period of repeated exposure to trust breaches. The paper shows that single strand solutions, such as improvements to customer communication, are no longer sufficient, nor, more importantly, do they have the same impact. Instead, the paper shows the necessity to utilize more effectively and target attention towards three distinct antecedents: external regulations and their enforcement; third party and expert endorsements, and therefore external reputations; and customer satisfaction in terms of the effective delivery of customer expectations.

Organizational trust has been shown as critical in positively affecting and repairing broken relationships through uncertainty reduction and confidence enhancement. In the past, different meta-analyses of trust have been undertaken, but this, to the authors knowledge, is the first meta-analytic study measuring trust on an organizational level in the context of the financial services sector and its regulatory environment. This meta-analysis indicates that regulation is just one of a suite of devices that organizations need to deploy in their efforts to restore trust. The paper identified two further elements: customers require direct evidence, and do take note of the external endorsement of the firm.

The past two decades have witnessed significant changes in China as it has moved from a centrally planned economy to a more market‐oriented one. As a socialist nation, state owned enterprises (SOEs) continue to comprise a dominant part of economic activity in China. While many SOEs are inefficient and incur losses, economic reforms since the late 1970s have brought about irrevocable changes in the manner in which Chinese SOEs conduct their business. The important agenda for the Chinese government now is how to “vitalize” state sectors and ensure that SOEs are able to strive for their own survival. SOEs therefore are exploring ways to improve the productivity of their current operation and to enhance innovativeness in their business development, including seeking financial and technological resources overseas. The varying levels of market‐orientation in SOEs present diverse outcomes for the SOEs. This study attempts to evaluate the extent to which the SOEs have adopted market‐based organizational learning (Sinkula, Baker, and Noordewier 1997), market orientation (Deshpande and Farley 1998), entrepreneurial orientation (Smart and Conant 1994), and learning and innovativeness (Hurley and Hult 1998).

There is an overemphasis on an outside‐in, macro‐organizational view of learning and an under‐emphasis on the inside‐out view which recognizes that people are the main agents of learning and change. Attempts at building a learning organization should start with an understanding of how adults learn and develop rather than elaborate ideas about competitive strategy, market research and information dissemination. Adult learning theory tells us that people learn primarily by being encouraged to tackle challenges, experiment, fail and correct failures and reflect on their experiences. The challenge in building learning organizations is fighting the bureaucratization that often replaces experimentation with control and routine. This paper examines the literature on market orientation, organizational learning and adult learning theory to identify how individual level learning can be maximized as a mechanism for enhancing organizational learning. Recommendations are made to integrate these streams of research and offer suggestions for further research.

China’s economy is transforming at a brisk pace. A partially dismantled command economy and introduction of competition have fueled consumer demand for a greater selection of innovative new products in the retail market. The challenge for retail buyers is to adjust their procurement processes to respond to consumer needs in an efficient and effective manner. This study examines factors influencing buyer‐supplier relationships in a transition economy. We present a model to explain the factors driving retail buyer dependence on suppliers. We find that retailer evaluation of supplier credibility mediates the relationship between retailer perceptions of a supplier ability to add value to its business and the ability to achieve its desired goals. In part, this is due to the supplier’s market orientation. Interestingly, guanxi ties have no impact on the retailer perceptions of the supplier credibility, but have a positive affect on retailer dependence on its supplier partners.

The service profit chain postulates that higher employee satisfaction levels lead to high customer satisfaction, and ultimately affect consumer loyalty and profitability. One construct that has largely been ignored in most of this research has been the role of employee turnover. This paper proposes that employee turnover can also be a powerful predictor of employee sentiment and resulting customer satisfaction levels.

The relationship between employee satisfaction, employee turnover and customer satisfaction ratings is explored using an extensive data set from a chain of convenience stores. Employee perceptions were obtained from a survey which developed and administered to all store personnel. Turnover data were obtained from archival data. The data are analyzed using path analysis.

The test of various turnover indicators suggests that certain employee turnover indicators can perform as effectively as single‐item employee satisfaction ratings do in predicting customer satisfaction.

The finding that turnover predicts customer satisfaction as effectively as employee satisfaction is new and has important implications. More attention should be paid to managing customer satisfaction through managing turnover. Also, the use of turnover as an indicator of customer satisfaction should be explored in light of the fact that employee turnover is a naturally collected managerial measure, and does not require the costly administration of employee satisfaction surveys.

A series of interviews were conducted with 12 experienced Organization Development (OD) practitioners in order to explore the impact that changes in the business world may have had on the values of the field. Eight major themes emerged from these interviews: (1) OD practitioners are driven by large system change; (2) humanistic values remain at the core of OD efforts; (3) practitioners are focusing more on business effectiveness issues; (4) achieving personal goals and rewards are strong motivators; (5) practitioners sometimes project their own issues and problems onto clients; (6) some operate as fringe dwellers on the margin of commitment to organizations; (7) the OD missionary is alive but not well; and (8) training for the field is a severe problem – there are too few mentors for the number of people entering the field. Addresses implications for the field of OD.