EXPLORING KEY ELEMENTS REQUIRED FOR ORGANIZATIONAL TRUST AND THE CONSEQUENTIAL IMPACT ON KNOWLEDGE SHARING WITHIN ORGANIZATIONS

International Journal of Managing Information Technology (IJMIT) Vol.10, No.4, November 2018
DOI : 10.5121/ijmit.2018.10402 23
EXPLORING KEY ELEMENTS REQUIRED FOR
ORGANIZATIONAL TRUST AND THE
CONSEQUENTIAL IMPACT ON KNOWLEDGE
SHARING WITHIN ORGANIZATIONS
Robin Zarine and Muhammad Saqib
Department of Computing, Middle East College, KOM, Muscat, Sultanate of Oman
ABSTRACT
This paper focuseson the status of organizational trust in Muscatand its impact on organizational learning
(OL) which is based on the willingness of employees sharing knowledge gathered through experience to
improve organizational performance and sustainable competitiveness [1]. Online structured questionnaire
andMicrosoft Excel used to collect and analyze the data showed significant organizational trust exist
within organizations including organizational transparency, management style, employees’ welfare and
support, and job security. But still, minimalOL and sharing was happening contradicting theories that
suggest organizational trust leads to important group collaboration, willingness of employees to share
knowledge gathered through their experience and its close link to OL. Lack of compassion and being too
controlling at timeswere also raisedas concerns and existing knowledge sharing technological support
were also not having much impact. Bringing people together for more effective communications among
teams and promoting knowledge sharing culture can lead the way.
KEYWORDS
Organizational trust, Trust Management, Learning and knowledge sharing
1. INTRODUCTION
Organizational trust may be viewed as developing trust among colleagues thus leading to
important group collaboration [2] and employees’ willingness to be exposed to organization’s
actions where such willingness is based on clear communication of organization’s action in
between employees and organizations, be it through informal or formal means [3]. It also relates
to employee job satisfaction and overall perception of organization’s effectiveness through
measurement like competence, openness and honesty, reliability and identification.
Trust has been recognized as a needed factor for any relationship building, be it social, economic
or political such as employee and /or customer loyalty towards organizations, organizational
alliance, cross-cultural communication, bilateral or multilateral agreements and even learning [4].
Trust is not always easily achieved so that is why it is gaining more and more attention in public
discussions and academic studies. Paliszkiewicz also suggested that trust can be solid foundations
for crucial dealings in life whether it is friendship development, dialogues aiding and political
issues resolving, be it local, regional or international, cross-cultural agreements enabling, and
even investment choices influencing. Saunders et al. also view trust to be very influential in
safeguarding workable relations among dissimilar parties; in particular parties with different
cultural background [5]. It will consequently, positively impact performance be it an individual, a

24
group or an organization level. Therefore it is crucial to appreciate the importance of trust and its
management especially in organizations.
This paper is based on an empirical research focusing on the existing trust within private and
public organizations in Oman and its impact on knowledge sharing within those organizations.
Such type of trust is referred to as organizational trust and is generally defined as positive
expectations of individuals with regards to intents and behaviours of organizational members in
relation to organizational roles, relationships, experiences and interdependencies [6]. The paper
will also highlight some of the factors that need to be in place to promote organizational trust and
the consequential impact on the knowledge sharing culture.
2. LITERATURE REVIEW
2.1 Trust Definition
Trust is simply one’s expectations that the behaviour of other parties with whom he/she interact
or corporate with, be it individuals, groups or organizations, will be favourable to his/her well-
being [7]. Since normally one party would be independent of the other, it means that each party is
taking some sort of a gamble when choosing to trust each other which is in line with Blomqvist
interpretation that suggest trust can be viewed as one person’s preparedness to be exposed to
another person’s uncertain forthcoming behaviours based on past actions [8]. This willingness to
be exposed is based on three dimensions identified by Nyhan and Marlowe and these are
appropriate invested effort to act in accordance to pledges made among the participating parties,
truthfulness demonstrations during discussions, and refrain from taking disproportionate
advantage of each other [9].
Khodyakov relates trust to having the interacted parties being rational when it comes to decision-
making which link with ideas of honesty and morality [10]. In turn, such behaviors will influence
how one will choose to trust, as past behaviors will influence the trust level a party will be willing
to give at present and in the future. Barbalet argues that trust cannot be based on rational
calculations as rational calculations relate to present situations rather than future situations which
are closer linked to the characteristics of trust [11]. He further explains that a party will choose to
trust another party based on outcomes that are yet to occur as trust decision time always precede
the related outcomes which the trust will be based on. Therefore, trust may be fairly risky as the
expectations of one party always talk about to the yet to come actions of the other party. Creed
and Miles view trust as some combination of characteristic similarity and positive relational
experience, with broad societal norms and expectations [12]. They perceive those as the original
expectations of common trustworthiness and therefore, the stronger their existence, the higher
will the level of trust would be.
Some of the common features of the concepts of trust are identified by Paliszkiewicz as
interpersonal through good communication, situational rather than global, voluntary rather
compulsory, commitment based, mindful of each other’s trust, action-oriented and dynamic as it
keeps evolving [4]. It is to be noted that trust is an imperative instrument in our life, as it helps us
to get by the uncertainty that may arise due to the uncontrollable actions of other independent
parties [13].
2.2 Trust Management
As mentioned before, trust is dynamic as it keeps evolving and it may evolve positively or
negatively based on the continuous behaviours of the participating parties. Considering the many

25
benefits that can be reaped by having trusted partners transacting, it is crucial to manage the
achieved trust level or even increase the trust level wherever possible. Trust management may be
viewed as a cycle where initially trust relationships are developed, set up monitoring approaches
of each party’s behaviour while inter party’s transactions take place, and then determine the level
of trust each party would be willing to allow for the other participating party [13]. Trust
management based on this cycle can provide each participating party with the necessary
knowledge of other participating parties and so that more informed authorization decisions may
be taken.
Trust management has many advantages to offer participating parties as described by Ardagna et
al. Trust management ensures appropriate authentication and authorization of participating parties
during transactions, allows each participating party to define and regulate their own transacting
policies, supports designation and allows reorganization of control among participating parties,
and review of restrictions and conditions without much hindrance [14].
2.3 Organizational Trust
Organizations are groups of people brought together to work towards achieving a specific set of
goals [15]. To achieve such set of goals, the people brought together need to pull their efforts
towards the same direction meaning they have to cooperate with each other and that cooperation
requires trust among the co-workers and in the leading team. This kind of trust may be referred to
as organizational trust and how it develops somehow relate to the practice of the leading team as
suggested by research relating transformational leadership with employees’ trust in their leaders
[16]. The authors also stressed on the significance of the trust building processes in between the
employees and the leading team which is supported by Dursun who highlighted that
organizational trust will even be stronger while employees sense a supportive organizational
environment [15]. Therefore, the consequences of any violations of the employees’ trust by the
leading team will result in jeopardizing organizational trust and subsequently the initial purpose
of setting up organizations.
At present, there is no specific definition for organizational trust but many authors have made
good attempts to try and capture its principles. Some attempts include organization’s willingness
to take a gamble on its transacting partner to behave as per its expectations where such
willingness is mainly based upon its culture and communication behaviours in relationships and
transactions [17] while Lee and Stajkovic relate organizational trust as developing trust among
colleagues thus leading to important group collaboration which in turn may result in accrued
social capital [2]. Tan and Lim view organizational trust as employees’ willingness to be exposed
to organization’s actions where such willingness is based on clear communication of
organization’s action in between employees and organizations, be it through informal or formal
means [3]. Employees’ immediate social environment which mainly consists of colleagues can be
a vital medium for such communication. It can also be interpreted as the belief of employees that
the work being done by their organizations would result in benefits rather than harm to them
though they do not have any say in the decision making process thus the willingness to be
vulnerable.
Other attempts to define organizational trust include the positive expectations of individuals with
regards to intents and behaviours of organizational members in relation to organizational roles,
relationships, experiences and interdependencies [6]. They relate organizational trust to employee
job satisfaction and overall perception of organization’s effectiveness which are measured using
competence, openness and honesty, reliability and identification. Ralston followed a similar line
of argument relating organizational trust to either rational or relational occurrence that is based
on interpersonal connections or cooperative associations amongst the trusting parties [18].

26
Positive changes within the organizational working environment, be it, social or economic,
demonstration of gratefulness to team effort, noticeable and appropriate level of effort made to
deliver on promises and refraining from taking unwarranted advantage of employees by the
organizations are key elements described by Nyhan and Marlowe for strengthening
organizational trust [9] and therefore making organizational trust measurable by emotional,
cognitive and intended behaviour.
2.4 Organizational Learning
The importance of organizational trust is quite noticeable especially for organizational learning
and organizational performance [19]. King describes organizational learning as the continuous
incorporation of what has been learnt into the processes of the organization [20] which is fairly
similar to the description given by Drucker referring to the willingness of employees to share
knowledge gathered through their experience to be used as enrichment parts to existing processes
thus improving organizational performance and becoming competitively sustainable [1]. Such
willingness relate significantly to the concept of interpersonal or organizational trust but
unfortunately, the concept of organizational trust in not necessarily getting its well merited
attention even when perceived trustworthiness of an organization is on the decline [21] and so is
the organizational learning. Rather organizational leaders frequently view trust defensively and
possibly hinder the so well valued concept of organizational learning. After all, organizational
learning depends on people learning which is basically acquiring new knowledge and managing
them effectively.
3. BUILDING ORGANIZATIONAL TRUST
It has been argued that organizational trust is crucial for organizational learning which leads to
better organizational performance [19] and organizational distrust will negatively impact
organizational performance as employees tend to become less efficient [4]. Paliszkiewicz argues
that the dividends of high trust can also be calculated to justify the need for building trust and
even make it an explicit objective. Just like any objective, it must be measured and monitored so
that appropriate remedial actions may be taken to ensure continuous improvement. The leading
team needs to make it a high priority to ensure that distrust situations are identified and
eliminated; creates regularly opportunities to allow for demonstration of positive relational
signals; and institutionalized trust by integrating them within the organizational policies.
Creed and Miles argue that by increasing perceived similarities and the number of optimistic
talks among participated parties, the trust level will increase [12].
4. KNOWLEDGE SHARING
The process of Knowledge Management (KM) is essentially about making the better decisions
using knowledge and the available knowledge sources. The most important roles including
people, technology and processes are playing in this regard within the organizations. The life
cycle of KM thus shows a smooth flow of knowledge through capturing to creation further
knowledge. Perhaps one of the most important single aspect in this process is knowledge sharing.
It is an activity to exchange knowledge namely information, skills and or expertise among
individuals, groups and or communities. Vast majority of KM initiatives are depending on it. In
its simple terms can be called as either pull or push mechanism.
It is quite true that sharing totally depends on the willingness and or the habit of individuals. In
order to understand the potential issues or complexities of sharing, managing knowledge and or

27
user requirements, organizations must first create a trustworthy knowledge culture. Already such
processes, framework and systems are available to adapt and implement within organizations. A
trustworthy and knowledge sharing culture are itself the fuel of organization performance.
Collaborative innovation and trust is becoming increasingly important as it promotes the
knowledge sharing culture which normally leads to good practices thus resulting in overall
performance enhancement [22]. Organizations acquire any knowledge; the knowledge must be
shared within units/departments whenever they need to further develop the knowledge-based
systems or in dealing with any challenges. According to Newman and W. Conrad, the knowledge
sharing is an important component of organizational success and the quicker the knowledge
diffusion takes place, the greater the response time to problem solving would be and therefore the
better the organizational performance would be [23], [24].
5. METHODOLOGY
According to Industrial Research Institute, methodology is defined as a way of searching or
solving the research problem. It is a broad strategy to be undertaken to outline the objective. It’s
an organized and notional analysis of methods and principles applied in order to explore;
encompasses the concepts of theoretical model, paradigm, phases and techniques of quantitative
and qualitative research [25]. The current study intends quantitative research method. It directs
suitable simple technique of data collection and analysis tool using online structured
questionnaire, while explaining trust within organizations; it further examines the relationship
between trust and knowledge sharing. Hence, it is characterized as descriptive and correlational
study.
Additionally, the present study has deployed a survey method using online Google Doc. Survey
methods are significant and applicable. It helps in various types of data collection, variable
computation and analyses hypotheses [26]. Other benefits of survey methods are the accessibility
to a good number of respondents, on-site enquiry and bias-less manageability [27, 28]. Thus, it
was fruitful to use survey method with structured questionnaire to carry out this research study
(adapted and modified from Corbitt, Thanasankit and Yi (2003), Annick Willem Marc Buelens
(2007) and [23]). Furthermore, question-wise data analysis is done using MS Excel 2013 and as
literature reveals and depending on the context and nature of research study, unit of investigation
was public and private sector employees of organizations within Muscat, Sultanate of Oman. The
targeted employees were also all studying knowledge management either at Bachelor’s level or
Master’s level implying good understanding of the topics covered by the questionnaire.
Based on the different research results presented earlier, some key elements relating to
organizational trust and organizational learning (knowledge sharing) were identified and used as
the base for the questions needed for the research. So the measuring instrument is based on
overall perception of organization’s effectiveness such as openness, honesty, reliability, support
and knowledge sharing.
6. RESULT ANALYSIS
In the result analysis, the key elements that employees consider to be important for generating
organizational trust are identified and also the elements that they consider to be hindrance to the
development of organizational trust are looked at. An attempt to interpret the segment of
employees having a neutral view is also presented.
Based on the data collected, majority of employees (79%) feel that their current organization has
proven to be trustworthy and therefore they would feel comfortable enough to recommend a

28
friend to join them. Justifications for the trust included the ways their organizations handle
important decisions relating to them, whether or not it is a new situation. There is the feeling that
employees’ welfare are always being considered, positive reaction from their organizations are
received even when their weaknesses are exposed, and increasingly transparent practices are
being adopted by their organizations with regards to keeping them informed of the happenings
within their organizations.
Figure 1. Key Elements of Org Trust
Furthermore, the employees feel that their organizations are doing very well in keeping their
promises and would not be dishonest even if the opportunity should arise without the employees’
awareness. They also feel their jobs are well secured and the necessary supports are provided
even when venturing into unknown areas due to requirement for completing assigned tasks.
Significant collaborations in between employees and management exist which consequently
develops an approachable management style encouraging exchange of views whether for positive
contributions or concerns. These factors seemingly develop the employees’ trust towards their
organizations. The results are fairly in line with the dimensions identified by Nyhan and Marlowe
which include appropriate invested effort to act in accordance to pledges made among the
participating parties, truthfulness demonstrations during discussions, and refrain from taking
disproportionate advantage of each other (Nyhan and Marlowe 1997) showing existence of
organizational trust
Figure 2. Other key Elements

29
On the other hand though, there is a fairly evenly divided view on a few points with some
instances inclining negatively. These points may be viewed as points that employees view as
concerns that seemed to hinder the development of individual trust thus the organizational trust
within the organizations. These include the lack of compassions towards personal problems,
bringing up past events during disagreements or arguments, and organizations occasionally try to
be controlling overlooking the importance of mutual respect. This appears to instill in some
employees an unforgiving nature towards their organizations if it happens that their organizations
significantly deviate from their expectations. It can also frustrate them to the extent of leaving
their current organizations without much thought if better offer should arise which is not
normally beneficial to any organization particularly if the leavers are the organization’s
knowledge workers.
As pointed out before, trust is dynamic as it keeps evolving and it may evolve positively or
negatively based on the continuous behaviors of the participating parties. Therefore the
organizations in Oman may need to emphasize more on managing organizational trust to mitigate
those elements that may result in organizational distrust thus losing out on the many benefits that
can be reaped from it.
Figure 3. Hindrance Elements
Despite the inclination of employees’ trust towards their organizations, that trust does not seem to
be translating into a knowledge sharing catalyst for the organizations as knowledge sharing in
between and within departments is still fairly limited. Though organizations tend to emphasize
on collaborative technologies (58%) (such as internet & intranet) to allow for knowledge sharing,
not much appears to be happening in terms of bringing people together (inter-departmental
meeting, etc.).

30
Figure 4. Collaborative Technologies
Only by bringing people together (acquaintances) can guarantee more effective communication
among departmental management team to discuss new ideas, programs and activities that are
useful to the organizations. The encouragement for developing a reliable knowledge sharing
culture also tends to be fairly blurred and incentive systems that usually provide recognitions for
employees’ knowledge contributions are not being used much.
Figure 5. Knowledge Exchange
The figures below show the other related results and it can be noted that all the responses that
relate to positive contribution towards knowledge sharing fall below 50%.

31
Figure 6. Inter Dept. Communication
Figure 7. Knowledge Sharing Culture
Figure 8. Incentive

32
From the results, it can also be noted that a significant number of employees had a neutral view
of knowledge sharing practices within their organizations (ranging from 29% to 39%). Given
their familiarity (targeted group) with the knowledge sharing concepts, it should be quite
interesting to further investigate and establish clearly the reasons for them to be taking such
position. It can be fairly safe to assume that employees are not even paying much attention to the
concept of organizational learning (knowledge sharing) and therefore some sort of education and
awareness campaign be put in place.
7. CONCLUSIONS
It is clear that significant organizational trust exist within both the public and private
organizations in Muscat, Oman. The existence of the organizational trust is a result of practices
such as organizational transparency, management style, employees’ welfare and support, and job
security. On the other hand, lack of compassion and being too controlling at times are identified
as concerns that need addressing to mitigate organizational distrust. Furthermore, the existence of
organizational trust is not assisting with the organizational learning (knowledge sharing) as
expected which should also be looked at closer.
Also it can be deduced that without bringing people together to ensure more effective
communications among departmental teams and promoting of knowledge sharing culture, related
collaborative technologies alone will not have much impact too.
Furthermore, some sort of education and awareness campaign need to be introduced within the
organizations to promote the concept of organizational learning (knowledge sharing) which
hopefully can develop the necessary appreciation by the employees.
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Authors
Robin Zarine is a Senior Lecturer in Computer Science and ICT Management
at the Middle East College in Oman. He is actively involved in the planning
and the quality management of the institution. His research interest includes
technological impact on pedagogy, adoption of technology within HEIs,
organisational trust and knowledge management and sharing within
organisations. He has published conference and journal papers.
Dr. Muhammad Saqib is Associated with MEC as Senior Lecturer and
Program Manager for the last five years and involve with teaching and
research for the last 12 years. His areas of interest are knowledge management
and business intelligence, technology management and sustainable
innovations. He has published a number of journal and conference papers.

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