A question of context: the influence of trust on leadership effectiveness during crisis

Abstract

This paper examines the mediating role of trust for leadership effectiveness in a crisis and a non-crisis context. Data from employees was collected before and after the collapse of Lehman Brothers leading to the most severe crisis since the Great Depression. The findings indicate significant differences in the role played by trust for the relationships between leadership and follower selfefficacy and work effort. Trust was found to play a greater role during times of stability than during times of high uncertainty, providing a great number of questions for future research.