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Inter-organizational trust on financial performance: Proposing innovation as a mediating variable to sustain in a disruptive era
Journal article   Open access   Peer reviewed

Inter-organizational trust on financial performance: Proposing innovation as a mediating variable to sustain in a disruptive era

J. Oláh, Y.A. Hidayat, Z. Dacko-Pikiewicz, M. Hasan and J. Popp
Sustainability, Vol.13(17), Article 9947
2021
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Abstract

Hungarian Information and Communication Technology (ICT) companies have an essential role to play in a disruptive era. ICT firms should collaborate and innovate to obtain profit. The elusive correlation between trust in business partners and financial performance inspired this study, which proposed innovation as a mediating variable. The research had two objectives: to investigate the effect of inter-organizational trust on financial performance and innovation and to observe the role of innovation in improving financial performance within different categories of ICT companies. The population included active Hungarian ICT firms. The analysis used 100 samples, comprising micro-, small-, and medium-sized ICT corporations. Those samples were selected by random cluster sampling. This research used Partial Least Square Structural Equation Modelling. This study supported the idea that inter-organizational trust improved innovation, and that innovation enhanced financial performance. As an expected finding, innovation could mediate a positive direction between inter-organizational trust and financial performance.

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UN Sustainable Development Goals (SDGs)

This output has contributed to the advancement of the following goals:

#9 Industry, Innovation and Infrastructure

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Collaboration types
Domestic collaboration
International collaboration
Citation topics
6 Social Sciences
6.3 Management
6.3.2 Innovation Strategies
Web Of Science research areas
Environmental Sciences
Environmental Studies
Green & Sustainable Science & Technology
ESI research areas
Environment/Ecology
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