Creating Agile Institutions with Organizational Trust in the Finance Sector of Turkey: The Mediating Role of Psychological Empowerment in Times of COVID-19

Abstract

The study aims to evaluate the way for creating agile institutions with organizational trust. Besides that, the understanding of the mediating role played by psychological empowerment during COVID-19 pandemic is one of the major objectives of this study. The way psychological empowerment affects the creation of agile organizations is another major aspect that the study investigated. The philosophical stance that the research has adopted is the positivism philosophy. The study was done by collecting and analyzing quantitative data. The approach for the study is deductive whereas the design of the research is descriptive. The study used a survey method for collecting information. Structural equation model was used for analyzing quantitative information. The study was done on 325 samples who are working at the finance sector of Turkey. All the samples have a residence in Turkey. It was identified that the leadership approach of a company has a huge impact on the psychological construction of the samples. Descriptive statistics and t-test for inferential statistics were done by the researchers. There is a strong positive relationship between the centricity of the organization towards the workforce or customer and employee performance. It was identified that the leadership approach helps employees to address and adopt the change in the marketplace. It was also found that an agile organizational structure has more possibilities to modify the processing based on the change in the marketplace. The structural equation model was used to represent the relationship between the variables.