Procedural justice, trust an decision-making style: a study of collective enterprises in the context of China's reform

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.