Do organizational justice and leadership trust improve village-owned enterprises performance? organizational learning as mediating

Yesi Mutia Basri, Salsa Diva Anatasya, Hariadi Yasni, Taufeni Taufik, Atiton Martwo Putra, Ika Lutviana, Rafina Dewi, Damara Putri Hestia Indra Praja

Abstract


Research aims: This research aims to investigate the effects of organizational justice, trust in leadership, and organizational learning on the performance of Indonesian village-owned enterprises (VOEs).
Design/Methodology/Approach: The data for this study were collected using a questionnaire survey to 855 respondents affiliated with VOEs in the regencies of Kuantan Singingi, Rokan Hulu, Meranti, and Indragiri Hilir. The data analysis was performed utilizing SmartPLS, a software tool often employed in academic research for structural equation modeling and path analysis.
Research findings: The study's findings uncovered notable positive correlations between organizational justice and trust in leadership with the performance of VOEs. Furthermore, organizational learning served as a mediator in the correlation between organizational justice or trust in leadership and the performance of VOEs.
Theoretical contribution/Originality: According to the principles of social exchange theory, individuals are more likely to exhibit increased levels of contribution and commitment towards their organization when they see fair treatment and possess a sense of trust in their leaders.
Practitioner/Policy implication: This study highlights the significance of establishing a trustworthy atmosphere inside virtual organizational environments of VOEs to foster organizational learning and performance.
Research limitation/Implication: By promoting fair practices, building trust in leadership, and encouraging continuous learning, VOEs can improve their organizational performance.


Keywords


Social Enterprise; Organizational Justice; Trust in Leadership; Organizational Learning; Village-Owned Enterprise Performance

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References


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DOI: https://doi.org/10.18196/jai.v25i1.20838

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