Implementing supply chain information integration in China: The role of institutional forces and trust⋆

Cai, Shaohan; Jun, Minjoon; Yang, Zhilin

doi:10.1016/j.jom.2009.11.005

Cited by 458 publications

(515 citation statements)

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“…In his seminal paper, Granovetter (1985) establishes the "social embeddedness" argument and postulates that "continuing economic relations often become overlaid with social content that carries strong expectations of trust and abstention from opportunism" (p. 490). Recent studies also demonstrate that guanxi contributes to producing trust within and across Chinese business organizations (Farh et al 1998, Cai et al 2010. Thus, we conjecture that when supply chain partners interact with each other repeatedly, trust and trustworthiness will substantially increase and the country differences we observe earlier will diminish.…”

Section: Repeated Interactionsmentioning

confidence: 60%

Trust, Trustworthiness, and Information Sharing in Supply Chains Bridging China and the United States

2014

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Whether and how trust and trustworthiness differ between a collectivist society, e.g., China, and an individualistic one, e.g., the U.S., generate much ongoing scientific debate and bear significant practical values for managing cross-country transactions. We experimentally investigate how supply chain members' countries of origin -China versus the U.S. -affect trust, trustworthiness, and strategic information sharing behavior in a cross-country supply chain. We consider a two-tier supply chain in which the upstream supplier solicits demand forecast information from the retailer to plan production; but the retailer has an incentive to manipulate her forecast to ensure abundant supply. The levels of trust and trustworthiness in the supply chain and supplier's capability to determine the optimal production quantity affect the efficacy of forecast sharing and the resulting profits. We develop an experimental design to disentangle these three aspects and to allow for real-time interactions between geographically distant and culturally heterogeneous participants. We observe that, when there is no prospect for long-term interactions, our Chinese participants consistently exhibit lower spontaneous trust and trustworthiness than their U.S. counterparts do. We quantify the differences in trust and trustworthiness between the two countries, and the resulting impact on supply chain efficiency. We also show that Chinese individuals exhibit higher spontaneous trust towards U.S. partners than Chinese ones, primarily because they perceive that individuals from the U.S. are more trusting and trustworthy in general.This positive perception towards U.S. people is indeed consistent with the U.S. participants' behavior in forecast sharing. In addition, we quantify that a Chinese supply chain enjoys a larger efficiency gain from repeated interactions than a U.S. one does, as the prospect of building a long-term relationship successfully sustains trust and trustworthiness by Chinese partners. We advocate that companies can reinforce the positive perception of Westerners held by the Chinese population and commit to long-term relationships to encourage trust by Chinese partners. Finally, we also demonstrate that both populations exhibit similar pull-to-center bias when solving a decision problem under uncertainty (i.e., the newsvendor problem).*

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Section: Repeated Interactionsmentioning

confidence: 60%

Trust, Trustworthiness, and Information Sharing in Supply Chains Bridging China and the United States

2014

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“…In respect of cultural differences, managers should be aware of particular Chinese aspects, such as guanxi, that are important in day-to-day business and support trust building (cp. Cai et al, 2010).…”

Section: Practical Contributionsmentioning

confidence: 99%

Supplier Development for Sustainability: Contextual Barriers in Global Supply Chains

Busse¹,

Niu²,

Schleper

et al. 2016

AMPROC

107

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Acknowledgments:An earlier version of this paper was the recipient of the 2015 Chris Voss Best Paper Award granted at the 22 nd European Operations Management Association conference. We are most grateful to the EurOMA Scientific Committee for choosing our paper and encouraging us to consider IJPDLM as a publication outlet for our research. We also acknowledge the helpful feedback received at the conference. Moreover, we would like to thank the three anonymous reviewers at IJPDLM who have provided extremely insightful and constructive suggestions which helped us to improve this paper substantially. Finally, we express our gratitude to the Editor, Alexander E. Ellinger, for facilitating a speedy review process. Design/methodology/approach -A dyadic case study design was adopted with a Western European buyer and six of its Chinese suppliers. The database consists of 41 interviews and 81 documents.Findings -Contextual barriers to SDS in global supply chains derive from complexities in the sustainability concept, socio-economic differences, spatial and linguistic distance, as well as cultural differences between buyers and suppliers. Partial remedies include effective joint communications, an open organizational culture, and the fostering of cross-contextual understanding.Research implications -The findings contribute to theory development at the intersection of sustainable and global supply chain management research. They help to explain why scarce sustainability-related progress in global supply chains has occurred in recent years.Practical implications -The identified barriers facilitate managerial decision making that will expedite SDS progress in global contexts.Social implications -By diffusing knowledge regarding available remedies, the study contributes to improving SDS effectiveness, thereby fostering sustainability capabilities and performance of suppliers.Originality/value -This research highlights the criticality of contextual barriers to SDS. The barrier effects that stem from differing real-world conceptions of sustainability may inform future sustainable supply chain management research within and beyond SDS.

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“…Trust is also an important predictor of knowledge sharing, as is claimed by Chen et al (2014), and it is closely linked to information sharing and exchange (Bachmann & Inkpen, 2011;Cai, Jun & Yang, 2010;Cheikhrouhou, Pouly & Madinabeitia, 2013;Msanjila & Afsarmanesh 2009Thimm & Rasmussen, 2010). According to Young and Milton (2011), information is a source of knowledge.…”

Section: H1: Trust and Collaborative Culture Have A Strong Positive mentioning

confidence: 96%

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Implementing supply chain information integration in China: The role of institutional forces and trust⋆

Cited by 458 publications

References 88 publications

Trust, Trustworthiness, and Information Sharing in Supply Chains Bridging China and the United States

Trust, Trustworthiness, and Information Sharing in Supply Chains Bridging China and the United States

Supplier Development for Sustainability: Contextual Barriers in Global Supply Chains

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