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The purpose of this paper is to assess the effects of two types of trust (vertical and horizontal trust) on knowledge sharing (knowledge donating and knowledge collecting) and the impact of knowledge sharing on innovative work behavior (idea generation and idea realization). The study also explores the mediating role of knowledge sharing.

Partial least squares path modeling and data collected from 252 participants at one large Polish capital group were used to test the research hypotheses.

The results showed that both vertical trust and horizontal trust are positively related to knowledge donating and knowledge collecting. Contrary to knowledge collecting, knowledge donating is significantly related to idea generation, which is highly correlated with idea realization. There is no direct relation between knowledge sharing behavior and idea realization. Knowledge donating mediates the relationship between vertical trust and idea generation.

Self-reports and the cross-sectional nature of the data collection are the main limitations of this study.

The results allow managers to better understand what factors and processes contribute to greater employee innovativeness.

To the best of the author's knowledge, the study is the first to examine the relationships among vertical trust, horizontal trust, knowledge donating, knowledge collecting, idea generation and idea realization in an integrated way. This paper answered the questions (1) which type of trust is more important for knowledge sharing, and (2) which type of knowledge sharing behavior is more important for innovative work behavior. This paper investigated whether differences in the strength of relationships between constructs are significant.

This study examines the relationship between trust, organizational climate and team learning among project team members (PTM). In recent years, many companies have come to recognize the important role team learning plays in achieving competitive advantage.

Data were collected through a survey questionnaire, and responses from 86 PTM provide support for the research model and demonstrate that how organizational climate mediates the relationship between trust and team learning.

The structural equation analysis of the data collected from 86 project team members indicate that both vertical and horizontal trust influences organizational climate, which, in turn, is a determinant of team learning. In addition, although both types of trust contributed to organizational climate, the results indicated that horizontal trust had a greater influence on organizational climate and team learning.

The study employed the survey method and is not without limitations. The first limitation concerns our sample size, which was selected from one global company. Second, the survey data were all collected at a single point in time. Therefore, the authors cannot unambiguously infer causality. To attempt to do so, it would be useful to investigate the model in the context of organizational and development change. Despite these limitations, the results of the study have implications for theory and practice.

The implication for theory is that the results provide empirical support for the view that organization climates mediate the relationship between trust and team learning. On the practical side, the organizations should also pay more attention to increasing trust at the work place, especially among PTM that may contribute to favorable organizational climate, which is vital for team learning.

This paper addresses the simultaneous role of vertical and horizontal trust on organizational climate and how it contributes to team learning. The results indicate that organizations emphasis on horizontal trust can plays a vital role in team learning, which is a contribution to enhancing teamwork and performance in organizations.

The aim of this paper is to evaluate contrasting ways of tackling self-employment in the informal sector. Conventionally, the participation of the self-employed in the informal sector has been viewed as a rational economic decision taken when the expected benefits outweigh the costs, and thus enforcement authorities have sought to change the benefit-to-cost ratio by increasing the punishments and chances of being caught. Recently, however, neo-institutional theory has viewed such endeavor as a product of a lack of vertical trust (in government) and horizontal trust (in others) and pursued trust-building strategies to nurture voluntary compliance.

To evaluate these contrasting policy approaches, data are reported from special Eurobarometer survey 92.1 conducted in 2019 across 28 European countries (the 27 member states of the European Union and the United Kingdom) involving over 27,565 interviews.

Using probit regression analysis, the finding is that the likelihood of participation in informal self-employment is not associated with the level of expected punishments and chances of being caught, but is significantly associated with the level of vertical and horizontal trust, with a greater likelihood of participation in informal self-employment when there is lower vertical and horizontal trust.

The outcome is a call for state authorities to shift away from the use of repressive policy measures that increase the penalties and chances of being caught and toward trust-building strategies to nurture voluntary compliance. How this can be achieved is explored.

Evidence is provided to justify a shift toward seeking trust-building strategies by state authorities to engender voluntary compliance among the self-employed operating in the informal sector in Europe.

This study aims to generalize the research findings about the impact of individualism-collectivism, ethical idealism and inter-personal trust on ethically questionable negotiation tactics, such as pretending, deceiving and lying, in a Germanic culture, namely, that of Austria.

Survey questionnaires translated from English to German were collected from 304 respondents. A regression analysis was used to test the contribution of the independent variables to the explanation of negotiators’ attitudes towards questionable negotiation tactics.

The research empirically corroborated a classification of three groups of negotiation tactics, namely, pretending, deceiving and lying, in Austria. Austrian negotiators who scored high on vertical individualism tended to score high on the endorsement of the pretending tactic; those who scored high on horizontal collectivism tended to score low on the endorsement of the deceiving and lying tactics; those who scored high on vertical collectivism tended to score high on the endorsement of the deceiving and lying tactics; and those who scored high on inter-personal trust tended to score low on the endorsement of the pretending negotiation tactic. Idealistic negotiators tended not to endorse the use of pretending, deceiving and lying negotiation tactics.

The study investigated the respondents’ perceptions, rather than their actual negotiation behavior. Findings are limited to Germanic culture.

The study provides negotiators in Austria with a tool that has the potential to predict the extent to which Austrian negotiators would use various ethically questionable negotiation tactics.

This is the first study to present a model of the antecedents of negotiation tactics in a Germanic cultural context, where negotiation studies are limited. This study validates in Austria three questionable negotiation tactics groups of varying severity, which had previously been studied only in non-Germanic cultures. This research significantly contributes to the generalization of a model of the antecedents of the endorsement of questionable tactics across cultures.

The policy approach in Pakistan with regard to combating the informal economy has remained quite myopic and skewed in its reliance on measures informed by the rational economic-actor theory as opposed to the social-actor approach. Thus, this study attempts to evaluate and synthesise the two alternative policy approaches and formulate a more theoretically integrative understanding of the subject.

The authors gather data from 600 micro-entrepreneurs operating in the retail and wholesale sector of Lahore, Pakistan, which is then analysed using an ordered logit regression technique.

In contrast to more developed countries, the finding here is that higher perceived penalties have a highly significant and positive impact on the level of formality of Pakistani micro-entrepreneurs. The perceived risk of detection, meanwhile, has only a moderately significant impact on the micro-entrepreneurs level of formality. Likewise, the level of vertical and horizontal trust has a positive but moderately significant impact on the level of formality. Nonetheless, both the vertical and horizontal trust exhibit a very significant moderating effect on the relationship between the use of penalties and the level of formality, that is, the higher the level of trust that the micro-entrepreneurs have in the state and other businesses, the lower is the effectiveness of punitive measures.

Deterrence is an effective way to enhance the level of formality in the case of the Pakistani context. Nonetheless, the authors imply that without building trust, this overreliance on punitive and detective measures can actually be counter-productive. A combined and congruent (not sequential) use of voluntary compliance measures is thus warranted.

It is a unique attempt to evaluate and synthesise the global policy theorisations in a non-mainstream and antagonistic climate, such as Pakistan.

The dominant theorisation of the informal economy views participants as rational economic actors operating in the informal economy when the expected benefits exceed the perceived costs of being caught and punished. Recently, an alternative theory has emerged which views participants as social actors operating in the informal economy due to their lack of vertical trust (in governments) and horizontal trust (in others). The aim of this paper is to evaluate these competing theorisations.

To do so, data are reported from special Eurobarometer surveys conducted in 2007, 2013 and 2019 in eight West European countries (Austria, Belgium, France, Germany, Ireland, Luxembourg, the Netherlands and the United Kingdom).

Using probit regression analysis, the finding is that increasing the expected likelihood of being caught and level of punishment had a weak significant impact on the likelihood of participating in the informal economy in 2007, and there was no significant impact in 2013 and 2019. However, greater vertical and horizontal trust is significantly associated with a lower level of participation in the informal economy in all three time periods.

The outcome is a call for a policy to shift away from increasing the expected level of punishment and likelihood of being caught, and towards improving vertical and horizontal trust. How this can be achieved is explored.

Evidence is provided in a Western European context to support a shift away from a rational economic actor to a social actor approach when explaining and tackling the informal economy.

Informal entrepreneurship challenges sustainable economic performance and is a barrier to productive entrepreneurship. In this context, the level of development of formal and informal institutions and their impact on informal entrepreneurship is crucial. This chapter examines the informal sector entrepreneurship in Kosovo using institutional theory lenses. Using a survey with 500 owners/managers of private companies, the study finds that the service industry has the highest participation in the informal economy compared to other sectors. On average small firms, compared to larger ones, report a higher percentage of unreported incomes. Our findings also suggest that when informal entrepreneurs perceive penalties for tax avoidance from tax authorities as high, they tend to have higher compliance with reporting their income. In addition, our findings indicate that the higher the vertical (trust in formal institutions) and horizontal distrust (trust in business partners), the higher the involvement in the informal economy. The chapter concludes with some policy implications for tackling the informal economy in Kosovo and similar institutional contexts.

This study aims to identify an antecedent that hinders knowledge sharing, namely, the perceived climate of Cha-xu. Based on the social exchange perspective, the authors propose a theoretical model that links the perceived climate of Cha-xu to employee knowledge sharing. This model focuses on the mediating role of two types of trust (vertical and horizontal trust) and the moderating role of task interdependence in influencing the mediation.

Using a sample of 509 Chinese employees, this study carried out a survey on an online platform. This study developed a structural equation model and tested the moderated mediation hypothesis by using Mplus 8.0.

The results showed that two types of trust act as mediators in the relationship between the perceived climate of Cha-xu and knowledge-sharing processes. The mediating effect of horizontal trust is stronger. Most significantly, findings show that this mediated relationship is contingent on the level of task interdependence.

This paper provides evidence for distinguishing vertical trust and horizontal trust in the field of knowledge management. From a managerial perspective, this study identifies traditional cultural factors for hindering knowledge-sharing processes within Chinese organizations.

To transcend the long-standing debate regarding whether workers are driven into the informal economy by either their involuntary “exclusion” or voluntary “exit” from the formal economy, the purpose of this paper is to propose and evaluate the existence of a dual informal labour market composed of an exit-driven “upper tier” and an exclusion-driven “lower-tier” of informal workers, and to explore its policy implications.

To do so, data are reported from a 2015 survey of the informal economy conducted in South-East Europe involving 6,019 face-to-face interviews in Bulgaria, Croatia and FYR Macedonia.

Identifying a dual informal labour market with three exit-driven informal workers for every exclusion-driven informal worker, a multinomial logit regression analysis reveals that, compared to the exclusion-driven “lower tier”, the exit-driven “upper tier” is significantly more likely to be populated by the formally employed, retired and those not struggling financially. Participation is not affected by the perceived severity of penalties and likely risks of detection, but relative to those in the exclusion-driven “lower tier”, there is a significant correlation between those doing so for exit rationales and their lack of both horizontal trust and vertical trust in formal institutions.

The outcome is a call to transcend the conventional deterrence approach of increasing the penalties and risks of detection. Instead, to tackle those driven by exit rationales, tackling both the lack of horizontal trust that other citizens are operating in a compliant manner and the lack of vertical trust in formal institutions is advocated. To tackle exclusion-driven informal workers, meanwhile, a focus upon the macro-level economic and social conditions which lead to their participation is required.

This is the first paper to empirically evaluate the existence of a dual informal labour market and to evaluate its policy implications.

It is worth focusing on the examination of factors influencing the quality of the work environment. The purpose of this paper is to verify the influence of the HRM system and organisational trust on employee commitment.

The survey was conducted in Poland among 370 employees in organisations from two sectors of the economy: services and industry. The verification of the theoretical model was performed based on structural equation modelling.

Research findings made it possible to successfully verify the model of the relationship between the HRM system (practices, process), organisational trust and commitment. The starting point for trust in an organisation followed by commitment is the HRM system. It seems that the impact of the HRM process on creating organisational trust is higher. Research findings have also confirmed a relationship between each type of organisational trust and calculative commitment based on benefits, which is a strong determinant of affective commitment. Organisational trust is, therefore, an intermediary factor because the organisation must build trust in employees first before they become affectively committed.

Current studies have not examined the issue of a mutual relationship between three constructs: perceived HRM practices and process, organisational trust and commitment. What is more, previous research was confined to the constructs analysed holistically without considering their complexity (different types of trust and commitment). In addition, the authors attempted to enrich Allen and Mayer’s (1991) model with a new aspect of the commitment – calculative, which is linked to the benefits received by employees. The authors also identified the mediating influence of the trust and calculative commitment onto the affective commitment.