Innovative behaviour, trust and perceived workplace performance

Building on theories of social exchange, enactment, and trust, we provide a theorization of innovative work behaviour at the individual (IB) and team (IBT) levels and explain how desirable performance returns occur for individuals and teams. We further propose that horizontal (between team members) and vertical (between teams and their supervisor) team trust moderate the relationship between IBT and team performance. The results based on surveys conducted at two points in time in a large insurance company in the Netherlands show that employees’ IB is positively associated with perceived workplace performance at the individual and team levels and that the effects vary based on the forms of trust at play. Our findings offer important new knowledge about the consequences of entrepreneurship and innovation in the workplace and the significant role that trust plays in enabling such behaviour to promote perceived workplace performance, particularly in the vital financial services sector

Digitalization in the financial industry: A contingency approach of entrepreneurial orientation and strategic vision on digitalization

Technology is rapidly changing the financial industry. Banks, in particular, are faced with a shift from traditional, interpersonal forms of service to digital financial services. These digital technologies are more and more becoming today's standard in the banking sector, they challenge traditional business models, and they provide opportunities for banks to capitalize on. Building on the concept of entrepreneurial orientation (EO), this study of banks in Germany, Switzerland, and Liechtenstein aims at developing insights that explain how banks can use the tactics and strategies associated with EO to achieve superior performance in the digitalization age. The results from a survey in 102 banks show that: 1) banks that display high levels of EO report a higher level of performance, and 2) the relationship between a banks' strategic vision on digitalization, and performance is moderated by EO. These results indicate that the sheer level of the digitalization of a bank does not affect profitability. Instead, in this time of technological change banks should develop a clear vision on digitalization that is characterized by innovation, being ahead of the competition, and a willingness to take risks