The effects of financial and non-financial performances towards the managerial performances with interpersonal trust as a mediation variable

Purpose This paper aims to analyze the influence of the importance of measures in the performance measurement systems (non-financial and financial) on managerial performance, with interpersonal trust acting as a mediating variable. Design/methodology/approach The research was conducted at the University of Mulawarman by using a questionnaire among students who were the object of the research. Partial least squares were conducted along with Sobel’s test as the mediation test. Findings Interpersonal trust is the mediation effect between financial performance on managerial performance. The positive-marked coefficient indicates that higher financial performance will result in higher managerial performance if it is mediated by interpersonal trust that is also higher. Thus, interpersonal trust acts as a mediation variable of the relationship between financial performance and managerial performance. Practical implications The government should consider formulating a policy that will improve trust among managers, stakeholders and the public. Social implications The implications for managers include: an increase in interpersonal trust by improving the competence, integrity, reliability, openness and honesty and satisfaction in work. Originality/value Location of this study is University of Mulawarman, Samarinda, with student being the object of the study. This is the original of location of study means there has been no previous study research in the same location and of the same model. Originality is also shown in the investigation of interpersonal trust as the mediation variable in relationship between financial performance and non-financial performance on managerial performance.