SOCIAL BEHAVIOR AND PERSONALITY, 2015, 43(9), 1429–1440 © Society for Personality Research http://dx.doi.org/10.2224/sbp.2015.43.9.1429 DO THE COMPENSATORY EFFECTS OF OUTCOME AND PROCEDURE ON POLICY ACCEPTANCE DEPEND ON TRUST IN AUTHORITY? XUAN-NA WU Capital Normal University XUE WU Chinese Academy of Sciences and University of the Chinese Academy of Sciences Previous researchers have shown that procedural justice and outcome favorability interact to influence people’s beliefs and behaviors. When an outcome is unfavorable, people tend to respond more positively to policies with fair procedures. We conducted 2 studies to explore the influence of trust in authority on process-by-outcome interaction in public administration in China. In each study, there was a different public policy setting, and different designs and participants (i.e., a scenario tested with Chinese university students in Study 1 and a survey conducted with residents of a city in China in Study 2). The convergent results showed that the interaction between procedural justice and outcome favorability was moderated by trust in authority. When the level of trust was high, the interaction effect was significant, and a fair procedure attenuated the negative effect of an unfavorable outcome. However, when there was little trust, the interaction was absent. Theoretical and practical implications are discussed. Keywords: procedural justice, outcome favorability, trust in authority, acceptance of public policy, process-by-outcome interaction, voice. In organizations and society at large, it is considered easier to implement changes with positive rather than negative outcomes. However, changes with negative implications can be made more acceptable by being procedurally fair Xuan-Na Wu, Beijing Key Laboratory of Learning and Cognition, Department of Psychology, Capital Normal University; Xue Wu, Institute of Psychology, Chinese Academy of Sciences and University of the Chinese Academy of Sciences. This study was funded by the Natural Science Foundation of China (71401113). Correspondence concerning this article should be addressed to: Xuan-Na Wu, Beijing Key Laboratory of Learning and Cognition, Department of Psychology, Capital Normal University, No. 105 Xisanhuan Beilu, Haidian, Beijing 100048, People’s Republic of China. Email: wuxuanna@126. com 1429 1430 TRUST IN AUTHORITY AND POLICY ACCEPTANCE (see e.g., Brockner & Wiesenfeld, 1996; Colquitt, Greenberg, & Zapata-Phelan, 2005). Specifically, the effect of procedural justice on policy acceptance, such as the opportunity for people to voice their opinion on the policy, is stronger when the outcome is unfavorable than when it is favorable (Brockner & Wiesenfeld, 1996). Voice is an opportunity to express opinions in decision making and represents an important element of many decision-making processes (Folger, 1977). The process-by-outcome interaction pattern is known as the compensatory effect of procedural justice (Kwong & Leung, 2002). As shown in Figure 1, procedural justice has no effect when the outcome is favorable but is very effective when the outcome is unfavorable. Brockner and Wiesenfeld reported finding that policy acceptance is the lowest when both outcome favorability is poor and procedural justice is low. 7 6 APP 5 4 3 2 High OF Low OF 1 0 No voice Voice Procedural justice Figure 1. Interaction of procedural justice and outcome favorability. Note. APP = acceptance of public policy; OF = outcome favorability. The robust process-by-outcome interaction effect, which was originally demonstrated by Folger, Rosenfield, and Robinson (1983), has since been examined by other researchers (e.g., Brockner & Wiesenfeld, 1996), and was cited by Colquitt and colleagues (2005) in their overview of the organizational justice literature. However, this robust interaction effect has not been replicated in several studies (e.g., Dipboye & Pontbriand, 1981), and Lind (2001) stated that the conclusion of Brockner and Wiesenfeld (1996) that procedural justice effects are stronger when outcomes are negative was too general and that, in his opinion, procedural justice effects often occurred with equal potency regardless of the favorability of the outcomes involved, and may depend on other contextual variables. Researchers have shown that some variables dictate the process-byoutcome interaction pattern, for example, individual attributes of the recipients TRUST IN AUTHORITY AND POLICY ACCEPTANCE 1431 (Cropanzano, Paddock, Rupp, Bagger, & Baldwin, 2008), and the relationship between recipients and organizational decision makers (Kwong & Leung, 2002). To my knowledge—with the exception of Lin, Che, and Leung (2009), who focused on attributes of decision makers—few researchers have examined whether or not the attributes of the authority dictate the process-by-outcome interaction. I have continued this line of work from the people-perception perspective, with a different variable, namely, trust in authority. Literature Review and Hypotheses Development Trust in Authority Trust in authority is one of the most important variables on which academics and practitioners have focused in the fields of organizational and administrative management (e.g., van Dijke & Verboon, 2010). It refers to a belief held by organizational members about the authority enacting a procedure, namely, that the authority shares the members’ fundamental values and will protect their interests (Tyler & Huo, 2002). Previous researchers have investigated the effect of trust on people’s beliefs and behaviors (e.g., Bianchi et al., 2015; Sato & Ohnuma, 2013). Trust affects cooperative behavior in various contexts, including organizations and societies (De Cremer & Tyler, 2007), and when people have trust in the authority this enhances their support for public policy (Chanley, Rudolph, & Rahn, 2000). In this study, we explored the moderating effect of trust in authority on the processby-outcome interaction. Thus, we proposed the following hypothesis: Hypothesis 1: Trust in authority will have a positive influence on people’s acceptance of public policy in China. The Role of Trust in Authority in the Compensatory Effect of Procedural Justice With regard to the relationship between trust in authority and the process-byoutcome interaction, Brockner, Siegel, Daly, Tyler, and Martin (1997) showed that it was not procedural justice per se, but the degree of trust elicited by procedural justice that interacted with outcome favorability to affect people’s beliefs and behaviors. In daily life, people have often developed trust or distrust in authority in their interacting with that authority, and the level of trust can affect the subsequent procedural justice perception, attitudes, and behaviors of those people (De Cremer & Tyler, 2007). When there is trust in authority, this may moderate the interaction between procedural justice and outcome favorability. Researchers of the procedural fairness–trust relationship have recognized that trust can moderate fairness effects (Lewicki, Wiethoff, & Tomlinson, 2005). When people have a high level of trust in authority, procedural justice is operative. Conversely, when people distrust authority, procedural justice is only 1432 TRUST IN AUTHORITY AND POLICY ACCEPTANCE an impression management strategy and will lose its positive effect. For example, people in authority sometimes try to create the impression of being procedurally fair (i.e., “I listen but I do not consider what you say”). This strategy may possibly have positive consequences in the short term but, eventually, will lead to negative consequences. When the person in authority is not trusted, people realize that their capacity to use voice is simply an impression management tactic, and the opinions that they offer will be seen as not being meaningful, and consequently, there will not be a positive effect from the procedure (Cremer & Tyler, 2007). Although researchers (see e.g., Cremer & Tyler, 2007) have demonstrated that trust in authority enhances the effect of procedural justice, to our knowledge, no studies have been conducted in which the researchers have examined whether or not the compensatory effect of procedural justice is dictated by trust in authority. In this study, we explored the impact of trust in authority on the compensatory effect of procedural justice in the field of public administration. We tested a three-way interaction of trust in authority, procedural justice, and outcome favorability on people’s acceptance of public policy, in which trust in authority would enhance the compensatory effect of procedural justice. Thus, we proposed the following hypotheses: Hypothesis 2a: There will be a three-way interaction effect among trust in authority, procedural justice, and outcome favorability on people’s acceptance of public policy. Hypothesis 2b: When trust in authority is high, the interaction between procedural justice and outcome favorability will be significant, and procedural justice will attenuate the negative effect of unfavorable outcomes. Hypothesis 2c: When trust in authority is low, the interaction between procedural justice and outcome favorability will disappear. We examined the three-way interaction in two studies, using an experimental design in Study 1 and conducting a survey in Study 2. In Study 1, a scenario involving a subway fare policy was actually an experimental test of the causal effects of the independent variables: trust in authority, procedural justice, and outcome favorability. To make up for the deficiency of external validity of Study 1, in Study 2 we examined the hypotheses in a real policymaking setting involving a traffic restriction policy in Beijing. The manipulation of procedural justice was achieved by allowing or not allowing participants to have voice in the decision procedure. A procedure where the participants have, or do not have, the opportunity of voice is perceived as fair (Thibaut & Walker, 1975). This manipulation is common in experimental designs. Study 1 Method Participants and design. The voluntary participants comprised 180 TRUST IN AUTHORITY AND POLICY ACCEPTANCE 1433 undergraduate students at a large university in Beijing, China, who were paid 20 RMB (US$3.19) for their participation. They were randomly assigned to a 2 (trust in authority: high vs. low) × 2 (procedural justice: voice vs. no voice) × 2 (outcome favorability: high vs. low) between-subjects design. Procedure. Participants were asked to respond to questions about a scenario and imagine that they were the target character in the vignette. They read the following: “You are a resident in City A. The subway is your requisite mode of transportation every day. Because of the increasing pressure by the department operating the subway, the local administration plans to increase subway fares to relieve the operating pressure.” Participants then read more information about the three independent variables on the following pages. Manipulation of trust in authority. Prior researchers have suggested that ability, motivation, and trustworthiness are the most important dimensions of trust in administrative authority (De Cremer & Tyler, 2007). We manipulated trust in authority as follows: In the high-trust condition, participants read that Administration A was a reliable administration, in which the people in authority were concerned about the interests of the people in the community when formulating public policy, and had sufficient work and administrative capacity to satisfy the public. In the low-trust condition, participants were told that Administration A was an unreliable administration, in which the people in authority were not concerned about the interests of the people in the community when formulating public policy, and did not have sufficient work and administrative capacity to satisfy the public. Manipulation of procedural justice. In the voice condition, participants were told that the people in the administrative authority provided citizens with multiple opportunities to voice their opinions. In the no-voice condition, participants were told that the people in the administrative authority did not provide citizens with any opportunity to voice their opinions. Manipulation of outcome favorability. In the outcome high favorability condition, participants were told that subway fares would not be increased and the original fares were maintained. In the outcome low favorability condition, participants were told that subway fares would be increased up to double the original amount. Measures. The participants were then asked to respond to questions in a brief survey. Each question was rated on a 7-point scale (to assess trust in authority, 1 = distrust very much and 7 = trust very much; to assess procedural justice, 1 = very unfair and 7 = very fair; to assess outcome favorability, 1 = very unfavorable and 7 = very favorable; to assess acceptance of public policy, 1 = very dissatisfied and 7 = very satisfied). Manipulation checks were made. To assess whether or not the participants were involved in the scenario, we asked them “Do the officials of Administration A seek for public views before they enact the subway fare 1434 TRUST IN AUTHORITY AND POLICY ACCEPTANCE policy?” To assess trust in authority, we asked participants to what extent they trusted Administration A; to assess procedural justice, we asked participants to what extent they perceived the public policymaking procedure as fair; to assess outcome favorability, we asked participants to what extent the outcome was favorable to them. Acceptance of public policy was measured with three items adapted from those used by Leung, Tong, and Lind (2007) in their study. A sample item is “Are you satisfied with the policy for the subway fare?” Data analysis. We performed an analysis of variance (ANOVA) of participants’ responses to the questionnaire. Results Manipulation checks. As predicted, the results of the manipulation checks were significant. Participants in the high-trust condition felt that they had more trust in authority than did those in the low-trust condition (Mhigh = 5.06; Mlow = 2.30), F(1, 172) = 285.05, p < .001, 2 = .62. Participants in the voice condition made more favorable assessments of procedural justice than did those in the no-voice condition (Mvoice = 4.77; Mno voice = 2.27), F(1, 172) = 182.52, p < .001, 2 = .52. Participants in the high favorability outcome condition made more favorable assessments of outcome favorability than did those in the low favorability outcome condition (Mhigh = 5.13; Mlow = 2.08), F(1, 172) = 327.32, p < .001, 2 = .66. Hypotheses testing. Results of the ANOVA showed that the main effects of the three independent variables were positive and significant. Supporting Hypothesis 1, acceptance of public policy was greater when trust in authority was higher, F(1, 172) = 13.13, p < .001, 2 = .07, when the outcome was more favorable for the participants, F(1, 172) = 193.02, p < .001, 2 = .53, and when perception of procedural justice was relatively high, F(1, 172) = 16.98, p < .001, 2 = .09. However, it is most important to note that there was a three-way interaction, F(1, 172) = 6.35, p < .05, 2 = .04 (see Figure 2), which supports Hypothesis 2a, and the pattern depicted in the left graph was commonly reported by participants; that is, when their trust in authority was high, procedural justice interacted with outcome favorability. This supports Hypothesis 2b. A different pattern is depicted in the right graph; when trust in authority was low, the process-by-outcome interaction disappeared, and this supports Hypothesis 2c. To decompose the three-way interaction, we performed simple interaction effect analyses and simple main effect analyses. In the top graph in Figure 2, the process-by-outcome interaction was significant, F(1, 172) = 5.48, p < .05, 2 = .06, indicating that a strong perception of procedural justice can attenuate the negative effect of an unfavorable outcome. Analysis of simple main effects showed that the perception of procedural justice had a significant positive effect only when outcome was not very favorable, F(1, 172) = 14.68, p < .001, 2 = 1435 TRUST IN AUTHORITY AND POLICY ACCEPTANCE .26. This significant positive effect did not occur when the outcome was very favorable, F(1, 172) = 2.08, ns, 2 = .05. In the lower graph in Figure 2, the process-by-outcome interaction was not significant, F(1, 172) = 1.54, ns, 2 = .02. Only the main effect of outcome favorability was significant, F(1, 172) = 95.24, p < .001, 2 = .53. Trust in authority 7 6 6 5 5 4 4 APP APP High 7 3 3 2 2 1 1 0 Low 0 No voice Voice No voice High OF Voice Low OF Figure 2. Interaction of trust in authority, procedural justice, and outcome favorability (Study 1). Note. APP = acceptance of public policy; OF = outcome favorability. Discussion The results of Study 1 supported our hypotheses. Nevertheless, there are two limitations. First, although scenarios are often used in studies on procedural justice, their effectiveness depends on people using their imagination, as with behavioral results based on experiments and survey results based on real experiences. Thus, to remedy this limitation the three-way interaction study should be replicated in a real-life setting. Second, the participants were full-time undergraduate students, who lack both life experience and interaction with administration authorities. Therefore, to add to the robustness of our findings, our hypotheses should be examined with a sample of working adults. Study 2 We conducted Study 2 to replicate the results of Study 1 in a real-life setting in a different context. The context involved the traffic restriction policy put in place after the 2008 Beijing Olympic Games. We explored how citizens’ acceptance of the policy of driving a vehicle only on 6 days a week was affected by their 1436 TRUST IN AUTHORITY AND POLICY ACCEPTANCE perceptions of trust in the Beijing administration, procedural justice, and the outcome favorability of the policy. Method Participants and procedure. After a number of Beijing residents had been randomly approached in public areas of the city, 370 people (48.6% men and 51.4% women) were successfully interviewed for the survey, with an acceptance rate of 74%. With regard to their ages, 23.8% were younger than 30 years, 41.1% were aged between 30 and 39 and 35.1% were older than 39 years. With regard to education, for 21.9% their highest qualification was junior middle school education, and 78.1% had either a high school, college, or postgraduate qualification. Measures. The participants were asked to fill in a survey (procedural justice: 1 = very unfair to 7 = very fair; degree of voice: 1 = absolutely not and 7 = absolutely yes; outcome favorability: 1 = do not benefit very much and 7 = benefit a great deal). Trust in authority was assessed with four items covering the same dimensions as in Study 1. A sample item is “Do you trust the local administration to try to do beneficial things in the interests of the majority of people?” Cronbach’s alpha for the four-item scale was .83. Procedural justice was measured using five items, several of which pertained to the degree of voice that participants perceived they had (Lind & Tyler, 1988). A sample item is “Did the officials of the administration seek public views before they enacted the traffic restriction policy?” A sample of other items with high face validity is “Is the procedure used by the local administration to make the traffic restriction policy fair?” Cronbach’s alpha for the five-item scale was .85. Outcome favorability was measured with three items based on the outcome favorability measure used by Lin et al. (2009). A sample item is “Do people like you benefit from the traffic restriction policy?” Cronbach’s alpha for the three-item scale was .83. Dependent and control variables. Acceptance of public policy was measured using three items adapted from the items used by Leung et al. (2007). A sample item is “Are you satisfied with the traffic restriction policy?” Cronbach’s alpha for the three-item scale was .88. Three control variables (knowledge of the procedure, knowledge of the outcome, and traffic attitude) were also tested. Data analysis. We used hierarchical regression to analyze the data and test the hypotheses, and followed the procedure set out by Aiken and West (1991). Results and Discussion Summary statistics (means, standard deviations, correlations, and alpha coefficients) are shown in Table 1. 1437 TRUST IN AUTHORITY AND POLICY ACCEPTANCE Table 1. Means, Standard Deviations, Correlations, and Alpha Coefficients of Study Variables (Study 2) Variables Trust PJ OF APP M SD Trust PJ 3.51 3.55 3.96 3.98 1.14 1.02 1.36 1.38 .83 .15** .34*** .35*** .85 .46*** .47*** OF APP .83 .62*** .88 Note. N = 370. PJ = procedural justice; OF = outcome favorability; APP = acceptance of public policy. Coefficient alphas appear on the diagonal. ** p < .01, *** p < .001. Hypotheses testing. After the three main effects were entered, all the two-way interactions were entered and, finally, the three-way interaction was entered in the model. There was a positive main effect for trust in authority ( = .20), t(366) = 3.92, p < .001, supporting Hypothesis 1. It is most important that the key three-way interaction between trust, procedure, and outcome emerged (ΔR2 = .009), ΔF(1, 362) = 5.94, p < .05, ( = -.07), t(362) = -2.44, p < .05, supporting Hypothesis 2a, and the interaction was similar to that in Study 1. Following the procedure set out by Aiken and West (1991), we examined the subsequent simple interactions and simple main effects. In the top graph of Figure 3, there was an interaction between procedural justice and outcome favorability ( = -.16), t(362) = -2.02, p < .05, supporting Hypothesis 2b. Procedural justice had a positive Trust in authority 7 7 6 6 5 5 4 4 APP APP High 3 3 2 2 1 1 0 Low 0 No voice Voice No voice Voice Procedural justice High OF Low OF Figure 3. Interaction of trust in authority, procedural justice, and outcome favorability (Study 2). Note. APP = acceptance of public policy; OF = outcome favorability. 1438 TRUST IN AUTHORITY AND POLICY ACCEPTANCE impact on acceptance of public policy when the outcome was unfavorable ( = .77), t(362) = 3.92, p < .05, but not when the outcome was favorable. In the lower graph of Figure 3, there was no interaction between procedural justice and outcome favorability ( = .03), t(362) = .33, p > .10, supporting Hypothesis 2c. The main effect of procedural justice ( = .14), t(362) = .98, p > .10, was nonsignificant. There was a positive main effect for outcome favorability ( = .71), t(362) = 7.71, p < .001. General Discussion Evidence that supported the predicted three-way interaction was provided in each study. It is important that similar results emerged in both the experimental and field studies, with the strengths and weakness of each study compensating each other. Theoretical and Practical Implications The findings in this study contribute to the theory and practice of social justice by extending research on the process-by-outcome interaction. On a theoretical level, we have extended procedural justice research to the field of public administration, especially in regard to policy acceptance by the public. Previous justice researchers have often conducted their studies in the field of organizational management. For example, when McFarlin and Sweeney (1992) surveyed 675 employees at a bank, they found that procedural justice in allocating outcomes had a positive effect on the employees’ organizational commitment, pay level satisfaction, and job satisfaction. Our results demonstrate when procedure and outcome can interact, and show that trust is necessary for this interaction. In the absence of trust, policy acceptance is driven solely by outcome favorability. Therefore, administrators should build trust in the government and its policies, because it is trust that generates the compensatory effect of procedural justice. In this paper, we have addressed the theory behind the process of how trust relates to the process-by-outcome interaction. Brockner, Siegel, Daly, Tyler, and Martin (1997) showed that trust could mediate the process-by-outcome interaction, in that it was not procedural justice itself, but the degree of trust elicited by procedural justice that interacted with outcome favorability to influence people’s beliefs and behaviors. Our results showed that trust in authority moderated, rather than mediated, the process-by-outcome interaction. The effects of trust in this interaction were, thus, different from those previously reported, and it will be necessary to explore further when and how the moderating or the mediating role of trust in authority on the process-by-outcome interaction operates. On a practical level, the results demonstrate to those in authority in organizations or administrations that either a fair procedure or a favorable outcome can elicit a TRUST IN AUTHORITY AND POLICY ACCEPTANCE 1439 positive reaction by the general public to an authority’s decision, when the public has trust in authority. Furthermore, when people do not have trust in those in authority, the combination of a fair procedure and a favorable outcome can still elicit a positive public reaction to an authority’s decision. Limitations and Future Research Directions There are several limitations in this study. First, we focused on only one element of procedural justice, namely, voice. It is necessary to test these hypotheses in experiments using a different manipulation of procedural justice, such as whether the decision made by those in authority is based on biased or accurate information. 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