Advances in Management and Applied Economics

The influence of organizational climate on sustainable relationships between organization and employees. The KION case study

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  • Abstract

    This study considers factors influencing relationships on an employee and employer level (micro-level) as well as the effectiveness and performance of the organization as a whole (macro-level). The organizational climate plays hereby a central role as a determinant of the organizational behavior and success. However, few empirical studies consider the role of the organizational climate as a link between both the micro and macro levels and its influence on the creating sustainable business relationships leading to improved economic performance. To conduct the analysis, we derive a hypothesis building upon existing literature and test the hypothesis through survey of organizational members and by employing a structural equation model. The results show a very good relationship among all variables considered in the model, especially between innovation, trust, communication and sustainable relationships. The study provides also managers with a useful tool for evaluating the climate of the organization and the quality of relations with its members. Because only one organization was analyzed, the research results may lack generalizability. Future research would need to adopt the proposed model on other organizations and countries.