Trust, commitment and relationships in supply chain management: a path analysis

Purpose – The primary purpose of this study is to examine the relationships between the level of trust and several relevant constructs drawn from transaction cost analysis (such as asset specificity, behavioral uncertainty, and partner's opportunism) and social exchange theory (informational sharing).Design/methodology/approach – A comprehensive questionnaire based on various theories on trust and commitment was mailed in 2001 to supply chain practitioners in the Midwest region. A total of 171 valid returns were received out of 1,800 mailings (9.5 percent). A path analysis was used to estimate parameters or relationship between relevant constructs and trust, and trust with the level of commitment.Findings – A firm's trust in their supply chain partner is highly associated with both parties’ specific asset investments and social exchange theory. Information sharing has a primary impact on reducing (improving a partner's uncertainty behavior which, in turn, would improve the level of trust. Finally, the lev...

[1]  M. Deutsch.  Trust and suspicion , 1958 .

[2]  Richard M. Steers.  Antecedents and outcomes of organizational commitment. , 1977, Administrative science quarterly.

[3]  K. Cook,et al.  Power, Equity and Commitment in Exchange Networks , 1978 .

[4]  G. W. McDonald.  Structural Exchange and Marital Interaction. , 1981 .

[5]  G. Spanier,et al.  The End of Marriage and Acceptance of Marital Termination. , 1983 .

[6]  John P. Meyer,et al.  Testing the "Side-Bet Theory" of Organizational Commitment: Some Methodological Considerations , 1984 .

[7]  W. Dugger.  The Economic Institutions of Capitalism , 1987 .

[8]  Robert E. Spekman.  Strategic supplier selection: Understanding long-term buyer relationships , 1988 .

[9]  Jeffrey L. Bradach,et al.  Price, Authority, and Trust: From Ideal Types to Plural Forms , 1989 .

[10]  Jan B. Heide,et al.  ALLIANCES IN INDUSTRIAL PURCHASING - THE DETERMINANTS OF JOINT ACTION IN BUYER-SUPPLIER RELATIONSHIPS , 1990 .

[11]  John R. Nevin,et al.  Performance Outcomes of Purchasing Arrangements in Industrial Buyer-Vendor Relationships , 1990 .

[12]  James A. Narus,et al.  A Model of Distributor Firm and Manufacturer Firm Working Partnerships , 1990 .

[13]  Allen M. Weiss,et al.  Converting from Independent to Employee Salesforces: The Role of Perceived Switching Costs , 1992 .

[14]  Andrea L. Larson.  Network Dyads in Entrepreneurial Settings: A Study of the Governance of Exchange Relationships , 1992 .

[15]  G. Zaltman,et al.  Factors affecting trust in market research relationships. , 1993 .

[16]  Jan B. Heide.  Interorganizational Governance in Marketing Channels , 1994 .

[17]  S. Hunt,et al.  The Commitment-Trust Theory of Relationship Marketing , 1994 .

[18]  Rodney L. Stump.  Antecedents of purchasing concentration: A transaction cost explanation , 1995 .

[19]  A. Zaheer,et al.  Relational governance as an interorganizational strategy: An empirical test of the role of trust in economic exchange , 1995 .

[20]  J. H. Davis,et al.  An Integrative Model Of Organizational Trust , 1995 .

[21]  J. Steenkamp,et al.  The Effects of Perceived Interdependence on Dealer Attitudes , 1995 .

[22]  Todd H. Chiles,et al.  Integrating variable risk preferences, trust, and transaction cost economics – 25 years on: reflections in memory of Oliver Williamson , 2021, Journal of Institutional Economics.

[23]  Hau L. Lee,et al.  Information distortion in a supply chain: the bullwhip effect , 1997 .

[24]  Rodney L. Stump,et al.  The contingent effect of specific asset investments on joint action in manufacturer-supplier relationships: An empirical test of the moderating role of reciprocal asset investments, uncertainty, and trust , 1999 .

[25]  Anil K. Gupta,et al.  Trust within the Organization: Integrating the Trust Literature with Agency Theory and Transaction Costs Economics , 1999 .

[26]  Daniel R. Krause,et al.  Avoid the Pitfalls in Supplier Development , 2000 .

[27]  David H. Maister,et al.  The Trusted Advisor , 2000 .

[28]  T. Stank,et al.  TEN-MEGA TRENDS THAT WILL REVOLUTIONIZE SUPPLY CHAIN LOGISTICS , 2000 .

[29]  Jeffrey H. Dyer,et al.  The determinants of trust in supplier–automaker relationships in the US, Japan, and Korea , 2000 .

[30]  N. Luhmann.  Familiarity, Confidence, Trust: Problems and Alternatives , 2000 .

[31]  Ik-Whan G. Kwon,et al.  Factors related to the organizational commitment of college and university auditors. , 2000 .

[32]  T. Daughtrey,et al.  COSTS OF TRUST FOR E-BUSINESS: RISK ANALYSIS CAN HELP E-BUSINESSES DECIDE WHERE INVESTMENTS IN QUALITY AND SECURITY SHOULD BE DIRECTED , 2001 .

[33]  Ajit Kambil,et al.  SERVICE MANAGEMENT: BUILDING PROFITS AFTER THE SALE. , 2003 .

[34]  N. Clarke.  The relationships between network commitment, its antecedents and network performance , 2006 .

[35]  Marta A. Geletkanycz,et al.  The New Breed of Black South African Senior Managers: Helping South African Businesses Meet the Challenge of a Transforming Economy , 2006 .

[36]  M. Darroch,et al.  Improving working relationships for smallholder farmers in formal organic crop supply chains: Evidence from KwaZulu-Natal, South Africa , 2006 .

[37]  Philip M. Kaminsky,et al.  Designing and managing the supply chain : concepts, strategies, and case studies , 2007 .

[38]  D. Simchi-Levi.  Designing And Managing The Supply Chain , 2007 .