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An Investigation into Corporate Trust and its Linkages

Lookup NU author(s): Dr Tana Licsandru, Professor Suraksha Gupta, Dr Rama Kanungo



This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND).


We use a second order model of corporate trust to empirically investigate trust-commitment and loyalty building mechanisms in the Indian context. The development of corporate trust is found contingent on both organizational practices and employee behaviour, which are conceptualised as first-order dimensions of the second-order construct of corporate trust. The conceptualization of corporate trust is shown to be valid irrespective of the exchange situation involving durable, non-durable or service products. Results of a survey conducted with 835 Indian consumers show that the higher order construct of corporate trust predicts affective, normative and continuance commitment to the organisation behind the brand. Affective commitment is found to be the highest driver of customer loyalty (word-of-mouth and share-of-wallet) in the Indian context. The results vary slightly across different exchange situations and provide various implications to theory and practice with an aim at building long term customer relationships in the Indian context.

Publication metadata

Author(s): Sharma K, Licsandru TC, Gupta S, Aggarwal S, Kanungo R

Publication type: Article

Publication status: Published

Journal: Journal of Business Research

Year: 2020

Volume: 117

Pages: 806-824

Print publication date: 01/09/2020

Online publication date: 26/06/2020

Acceptance date: 05/06/2020

Date deposited: 19/06/2020

ISSN (print): 0148-2963

ISSN (electronic): 1873-7978

Publisher: Elsevier Inc.


DOI: 10.1016/j.jbusres.2020.06.009


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