The Role of Agility in the Effect of Trust in Supply Chain on Firm Performance

Abstract

Emerging technologies and innovative developments cause the supply chain management to change dramatically.Therefore the subjects regarding trust have become important. Trust established in Supply Chain causes effective relationships among definitive numbers of suppliers in the long-run. The effect of trust in supply chain on firm performance and the contribution of agility to this relation have been supported in the literature. In this research, the role of agility in the effect of trust in supply chain on firm performance will be investigated. According to the results of hypotheses tests, there are positive and significant relations between supply management integration and trust in supply chain, between trust in supply chain and supply chain agility, and between supply chain agility and firm performance.Keywords: supply management integration, trust in supply chain, supply chain agility, firm performance IntroductionOver recent years, advanced companies for being afloat and protecting their positions in the competitive markets, have to gain new customers and provide differences against their competitors in increasing competion world. Therefore supply chain has become salient area to work in academic circles. However, it is widely mentioned in the literature that factors affect firm performance.Since supply management integration touches relationships of supply chain, researchers have argued for integration affect on performance to take into account relationship between supply chain partners (Arnt Buvik, 2015); (Pejvak Oghazi, 2016);(Lin, 2013); (Daniel Prajogo, 2012). In addition to integration factor, some concepts about the relationships such as honesty, trust, and collaboration became essential research topics for supply chain studies. However, researchers focus the relations on trust and integration (Min Zhang, 2013). Although the role of trust element on firm performance through relational structure has been examined (Jury Gualandris, 2015). Researchers also studied for agility affects on firm performance (David M. Gligor C. L., 2015) and furthermore the relations between agility and trust (Yang, 2014).The paper includes five sections: introduction, background, hypotheses development, research method, and the conclusion. In the bacground section, we present the literature of supply management integration, trust in supply chain, supply chain agility, and firm performance. Furthermore we explained their relations according to our research model in the hypotheses development part. For the research method, we used the structural equation modeling and in the conclusion part we showed analysis results.

The Nexus Between IT Capabilities and Firm Innovation Performance: The Mediating Effect of Supply Chain Agility

“…Similarly, few other empirical researches confirmed the direct link of supply chain agility and firm innovative performance (Aslam et al, 2018; Ezgi et al, 2017). Moreover, Eckstein et al (2015) highlighted the fact about IT-enriched agile firms having better performance than lean firms.…”

“…Supply Chain Agility: Supply chain agility is playing a mediator role in the proposed model. It was measured with 12-item scale and adapted from the study by Aslam et al (2018), Ayoub and Abdallah (2019), Dubey et al (2018), Şahin et al (2017) and Um (2017).…”