Impact of Buyer's Ethical Environment on Supplier's Performance: A Trust-based Mediation Model

Abstract

This research aims to analyze the impact of buyer ethical environment on supplier performance with mediating role of trust. For this purpose, 177 responses were collected by surveying employees of procurement departments of the manufacturing and service industry. The finding of this research shows that buyers' ethical environment has a strong positive impact on supplier performance, considering trust as a mediator. Similarly, the buyers' ethical environment has a positive impact on the trust in a buyer-supplier relationship. The findings of this research can help procurement managers and executives to enhance supplier performance in their procurement department by facilitating suppliers and strengthening their trust in buyer-supplier relationships.

Mapping the Research Landscape of Buyer-Supplier Relationships: Insights and Trends from Bibliometric Analysis

“…Firms have recently experienced significant disruptions impacting their operations, including material shortages and delayed deliveries. However, successful buyer-supplier relationships help firms cope with disruptions, shortages, and delays, enhancing competitiveness through collaboration and long-term partnerships (Elfenbein & Zenger, 2014;Rehman et al, 2023). The current market scenario drives a collaborative buyer-supplier relationship through resource sharing, product co-development, information sharing, and cost-sharing (Rungsithong & Meyer, 2020;Bag et al, 2021;Bag et al, 2021).…”