Trust, procedural justice and decision‐making style: a study of collective and private enterprises in the context of China’s reform

As a result of a broad range of reforms, one significant change in the governance landscape in China is the multiple forms of enterprise ownership. This empirical study investigates differences between private and collective forms of organizations in China’s transformation economy on managerial beliefs, using the dimensions of trust and procedural justice and how these views influence managers’ decision‐making behavior. The findings of the study suggest that there are differences in the emphasis managers place on trust and procedural justice in collectively and privately owned enterprises and that these managerial beliefs have a positive effect on decision making within these forms of enterprise.