Is Organizational Social Capital Crucial for Productivity Growth? An Exploration of “Trust” within Luxury Hotels in New Zealand

Abstract

It is said that organizational social capital influences organizational productivity. The five variables in organizational social capital include: commitment, communication, trust, influence, and social relations. For the international hotel sector, trust scores the lowest. This is a significant issue for hotels who employ significant levels of young, contingent labor, yet through this research the authors reveal that “age” and “length of service” are key drivers in developing organizational trust. While organizational social capital is purported as necessary for productivity growth, the present hotel operational employment environment and human resource practice—in response to business demands—appears to work against lifting productivity.

KEYWORDS:

• Organizational social capital
• productivity
• service industry

Acknowledgments

This article is submitted posthumously for Dr. Boddington who was a fellow researcher within this project.