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This study reports a range of positive effects of trusting relationships between leaders and followers on multiple measures of performance in small professional service firms. Six performance measures were used: financial outcomes, staff and customer satisfaction, productivity, and staff and manager tenure. Predictions that firms with high levels of manager–follower trust would outperform their low-trust peers were supported on all measures. Importantly, the findings indicated that retaining managers and staff in small firms is associated with high levels of manager–follower trust.

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Journal Article

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