A model for the role of trust in firm level performance: The case of family businesses

We explore the process through which trust within family firm leadership contributes to firm level performance. Specifically, we develop a model describing the underlying process through which trust influences commitment and in turn organizational performance. The effect of trust on the performance of family businesses is further understood by addressing the role of family member status and generation in moderating the relationship between trust and commitment. We test this model using longitudinal responses from top managers in family businesses. Results indicate that the effect of trust on performance takes place through commitment with family member status moderating the relationship.