Abstract:
Collective Owned Enterprises (COEs) are a common form of enterprise in China
which employ a substantial part of the rural and non urban workforce. They are
primarily owned by collectives or local governments. Most research on management
of enterprises in China has concentrated on urban industrial establishments,
particularly those which are joint ventures with foreign firms. This study concentrates
on trust, procedural justice and employee participation in COEs. A validated
questionnaire measuring these three variables was administered to 83 managers
employed by COEs in Hubei province in China. The findings of the study suggest that
trust in dependability and procedural justice have a positive effect on participation in
decision making within the Chinese collective enterprises. Commitment to procedural
justice was also found to be positively related to participation in decision making.
However trust in good faith was found to be unrelated to participation in decision
making.
