EVALUATING THE RELATIONSHIP BETWEEN QUESTIONABLE BUSINESS PRACTICES AND THE STRENGTH OF SUPPLY CHAIN RELATIONSHIPS

While strong relationships are consistently identified as a critical component of successful supply chain collaboration, many firms still engage in questionable business practices that threaten the trust and commitment that exists among trading partners. Survey results from logistics managers at manufacturing firms found that low to moderate levels of questionable business practices occur in relationships with customers and that the occurrence of these practices are related to lower reported levels of trust and commitment between trading partners. The results suggest that reducing questionable behaviors will increase trust and commitment, which should lead to stronger relationships and increased supply chain performance.

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