"Interrelation of Workplace Spirituality, Organizational Trust, and Performance in Small and Medium Enterprises (SMES): A Synergistic Approach"

Abstract

Purpose- This research examines the interplay between workplace spirituality and organizational performance in Indian small and medium enterprises (SMEs), with a specific focus on organizational trust as a potential mediating factor. The study also considers the implications of these relationships for the long-term sustainability of these businesses.

Design/methodology/approach- The research collected information from various levels of personnel in Indian small and medium enterprises (SMEs), including owners, managers, supervisors, and employees. Questionnaires were distributed to 550 participants, with 428 fully completed responses being included in the final analysis in Delhi and NCR Region of India. To examine the data, the study employed structural equation modelling using Smart PLS 4.0 software.

Findings- There is a significant direct effect on the relationships between workplace spirituality and organizational performance and this was further established that there is moderately strong partial mediation of organizational trust between workplace spirituality and organizational performance. These will be useful for the SMEs organization to improve their performance for sustainability in the present global environment flooded with smart technologies.

Research limitations/Implications - To enhance organizational performance, workplace spirituality and the role of trust were examined, and this was established that SMEs must adopt workplace spirituality to increase their performance in the present dynamic global economy for their survival. This study will assist stakeholders, owners, managers, and academicians in thinking about suitable strategies for adopting and developing a culture of spirituality for their competitive advantage and for their sustainability.

Originality/value - This study is unique as this contributes to understanding the role of workplace spirituality and the role of trust in the organizational performance of SMEs, which have been neglected in India.