The Influence of Communication and Information Quality on Trust in the Small Business Supply Chain

Supply Chain Collaboration and Trust in the Philippines

“…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. The study also supports the findings of Rascovic and Morec (2013) about the importance of softer (relational) benefits like trust, information sharing, cooperation, and relationship flexibility for long-term competitiveness.…”

“…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).…”

“…If properly executed and if founded on a trusting and long-term relationship, supply chain collaboration indeed leads to better operational performance (Anbanandam et al, 2011;Hua et al, 2009) and to global competitive advantage (Jones et al, 2010;McDowell et al, 2013;Nguyen and Liem, 2013;Rascovic and Morec, 2013). Soosay et al (2008) reported that having collaborative relationship is important in inculcating a culture of continuous innovation.…”

“…The real test, however, whether supply chain parties have trust in their relationship, is when both parties are ready to share private and even proprietary information (Doney and Cannon, 1997;Gullet et al, 2009). A high level of trust signals a lower perception of risk thereby giving both parties the confidence to proceed with the transaction and invest in a longer-term relationship (McDowell et al, 2013). Supply chain parties, however, are not very open to sharing information because of fear of opportunistic behavior that might be present in any of the parties (Edelenbos and Klijn, 2007 …”

“…Ha and Park (2011) found that affective trust (that which is founded on openness, benevolence, honesty, understanding, and respect) has a significant influence on collaboration in terms of information sharing and benefits/rewards sharing, while trust in competency (dealing with ability, skills, business judgment, and specialization) was found to be significantly associated with collaboration in joint decision making and benefits and rewards sharing. McDowell et al (2013) explained that a high level of trust connotes a perception of low risk, motivating the supply chain partners to enter into a long-term relationship.…”