Does Leader Member Exchange and Trust Enhance Absorptive Capacity of Tourism Firms? An Empirical Comparison of Two Nations

• Main Authors: Bekir Eşitti, Camelia Panfiloiu
• Format: Article
• Language: English
• Published: Danubius University 2021-06-01
• Series: EIRP Proceedings
• Subjects: absorptive capacity; leader member exchange; trust; tourism firms
• Online Access: https://dp.univ-danubius.ro/index.php/EIRP/article/view/161/172

In order for a tourism firm to survive and achieve a good position in its sector, it must have the ability to recognize the value of new information, assimilate and apply it to commercial ends. This capability, which is very important for tourism firms, is called absorptive capacity. Many factors affect absorptive capacity in terms of enterprises. However, among these factors, the main ones to be considered are trust and exchange between subordinates and leaders. Leader-member exchange theory is based on the idea that different relationships leaders develop with subordinates is what produces various organizational outcomes. According to this theory, a leader can develop closer and higher-quality relationships with some members, and lower quality and more authoritative relationships with some members due to some reasons such as limited time and resources. At this point, it can be thought that the trust of an employee in the organization, colleagues, and managers may affect the information and workflow between the leader and subordinates. From this point of view, the aim of this study is to examine the relationship between leader-member exchange, trust, and absorptive capacity in the sample of two tourism countries. According to the results of the study, leader-member exchange and trust increase the absorptive capacity of the tourism firms.