Relationship between governance quality of public institutions and organizational innovativeness, with emphasis on the mediating role of horizontal, vertical and institutional trust: A comparative study between Switzerland and Turkey

The purpose of this study is to explore whether the mediating effect of "Horizontal, Vertical and Institutional Trust" is exist on the relationship between "Governance Quality of Public Institutions (GQoPI)" and "Organizational Innovativeness (OI)", and if there is any, how much it differs in a developing country "Turkey", compared to the World's most innovative country: "Switzerland". Outcome of this paper is hoped to be useful for managers in developing countries to achieve higher organizational innovativeness, regardless of poor performance of their macro environment. A quantitative research was employed in Switzerland and Turkey, and primary data was collected through survey instruments from over 400 participants. Research will bring two new contributions to previous studies. First, unlike previous mono-country researches, its coverage will reach to two very distinct and different countries and this will enable us to compare and contrast findings. Second, comparison of "horizontal, vertical and institutional trust" as a new mediating factor was introduced in the literature. Managers and entrepreneurs can enhance organizational innovativeness by creating high-trust environment within their organization in countries where perceived quality of public institutions' governance is ineffective.