Trust and supplier-buyer relationships: an empirical analysis

Abstract

This paper investigates if regional differences are able to influence trust-based relationship with suppliers. It presents the results of a survey of 338 processing plants located in Western and Asian countries using structural equation modeling. Findings suggest that supplier involvement in quality is taken for granted, but it is not related to trust or partnership. Regional differences may also affect the development of partnership in the supply chain. The two main aspects are the levels of trust and timeliness in Asian companies. These aspects bring implications for managers dealing with international supply chains.

Supply Chain Collaboration and Trust in the Philippines

“…This supports the findings of Jones et al (2010) about goodwill and competence as trustworthiness dimensions in long-term relationships reflecting the relational view of the firm. The study also supports the findings of Vieira et al (2013) that supplier partnership is positively related to trust, especially that which involves sharing of problems with suppliers (openness). The findings also strengthen the assertions of McDowell et al (2013) that communication between organizations and higher levels of the quality of information received brought about by openness between the parties results in a higher level of trust between these organizations.…”

“…Certainly, supply chain collaboration, manifested in one's decision to share critical information, happens with a partner with whom you can relate and consult about the buyer-seller problems and struggles, and with whom you have a long-term relationship, supporting the claims of several authors (McDowell et al, 2013;Vieira et al, 2013). Development of high performance-capability trust would also depend on the track record of the supply chain parties in performing what they promised and on the development of equitable and honest professional relationship (Jones et al, 2010).…”

“…This means that a high level of trust between parties in a supply chain engagement is not necessary for a collaborative planning and decision-making process, like a sales and operations planning (SOP), as this could be a process or a system initiated by management and needs to be followed by the various planning stakeholders. Second, other perspectives of trust, such as transactional trust (dependence, formalization, and control) (Mamad and Chahdi, 2013), contractual and competence trust (Jones et al, 2010), and institutional trust (the regional context where the buyer and sellers are located) (Vieira et al, 2013;Nguyen and Liem, 2013), could be associated with collaborative planning and decision making. Doney and Cannon (1997) and Gullet et al (2010) noted that the real test of the presence of trust in a company is the sharing of private and even proprietary information between the supply chain parties.…”

“…Several authors have noted the long-term and strategic orientation of SCM and its importance in a company's survival (Vieira et al, 2013;Valmohammadi, 2013). SCM involves the interplay and integration of various stakeholders of the supply chain (Cooper and Ellram, 1993;McLaren et al, 2002).…”

Relational capital quality and client loyalty: firm-level evidence from pharmaceuticals, Pakistan

“…Trust represents the degree of reliability of a client on its supplier. It directly contributes to the improvement of relational quality, and has been defined as an asset for long-term partnerships (Cannon et al, 2010;Vieira et al, 2013). Companies are using modern supply chain management techniques, like the just-in-time inventory management system, where relationships based on high levels of trust are indispensable for both the supplier and client.…”