M Hofeditz

Do we bank on regulation or reputation? A meta-analysis and meta-regression of organizational trust in the financial services sector

Purpose – 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. Design/methodology/approach – 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 fin...

Vulnerability and trust in leader-follower relationships

Purpose – Vulnerability is a concept that lies at the core of the most prevalent academic trust definitions. Accordingly, a vast amount of scholars refers to vulnerability when studying trust. Surprisingly, there is almost no conceptual nor empirical work explicitly directed at understanding vulnerability itself. The purpose of this paper is to summarize and critique the existing base of knowledge of vulnerability with a particular focus on the leader-follower relationship and to open avenues for future research. Design/methodology/approach – In the process of a very systematic literature search, the authors identified 49 studies that refer to vulnerability when studying trust at the interpersonal level. The authors coded the literature into conceptualizations, antecedents and consequences of vulnerability – with a particular focus on the leader-follower relationship. Findings – The authors introduce a theoretical framework which allows the authors to structure the rather fuzzy discussed concept of vulner...