The role of trust in the service economy

Although existing literature has revealed the importance of trust in leadership effectiveness and organizational success, limited research has explored the nature, determinants, and outcomes of trust in the service economy. According to the Service Leadership Theory (SLT) proposed by Dr. Po Chung (co-founder of DHL International), the role of trust in leadership effectiveness becomes increasingly important in the contemporary service economy. Based on Dr. Chung's autobiographic writings, interviews with him and his former colleagues in DHL, and existing literature on trust, this study examined the meanings, determinants, and outcomes of trust in the SLT. Results underscore the importance of trust in the service economy. In addition, results show that service leaders should develop competence, character, and care to build up trust with followers and service recipients.