Trust, but what trust? Investigating the influence of trust dimensions on supply chain performance in smallholder agribusinesses in Uganda

Abstract

PurposeEven though trust is known for improving supply chain performance (SCP), previous studies have overlooked the investigation of its dimensions. Limited studies exist on the variations of the influence of trust dimensions in agribusiness supply chain relationships. This study examined the influence of trust dimensions on SCP in a developing country's context.Design/methodology/approachA cross-sectional study design was used to collect from 204 farmers and 192 traders (396 respondents) using a multistage sampling approach. Structural equation modeling was employed to analyze the hypothesized relationships.FindingsPooled sample results show that integrity and competence were the trust dimensions with significant effects on SCP, whereas competence was significant across different supply chains and markets, integrity and benevolence were only significant along fresh chains and in the contract market.Research limitations/implicationsThe extent of application of this study's findings is limited to situations similar to those of tomato and soybeans value chains in developing countries.Originality/valueThe paper contributes to a better understanding of the influence of trust dimensions on SCP across supply chains in different market typologies in agribusiness relationships in a developing country's context.

Agribusiness Supply Chain Collaboration: Role of Innovation Capacity and Business Process Agility as Antecedents of Supply Chain Performance

“…The study's findings confirm the conceptual model and previous studies and further validate the assumptions of RVT on the relational benefits of collaboration as reported in Owot et al (2023) and Dyer and Singh (1998). Supply chain collaboration is characterized by a complex web of linkages, intense competition, and opportunistic behaviors that affect the performance of small enterprises that are over-dependent on limited internal resources and capabilities (Ivanov, 2020).…”

“…Out of 2,879 members in the final list, 350 respondents were sampled based on Snedecor and Cochran's (1989) sample size determination framework and a similar study by Owot et al (2023).…”

“…Seeking better relational rent, new market opportunities, and productive efficiencies have heightened the interests of researchers and practitioners in supply chain collaboration (Uniyal et al, 2021). From the relational view theory (RVT), supply chain partners gain relational rent by leveraging resources embedded in inter-firm ties (Owot et al, 2023). Supply chain collaboration involves upstream and downstream partners who voluntarily pool together resources through close vertical and horizontal relationships to develop better inter-firm ties and boost mutual success (Duong & Chong, 2020).…”

Inter-firm relations and resource-based performance: a contingent relational view of small-scale farmers in Zambia

“…Additionally, the Small-scale farmers in Zambia dysfunctional elements of excessive affective trust can have unintended adverse effects on business performance by causing buyers to reduce the monitoring of their suppliers and rewards for superior performances. Thus, this result challenges the general notion that high trust leads to better business performance (Odongo et al, 2016;Owot et al, 2023), but supports previous studies that show that high trust intrinsically contains condition for misuse, which negatively influences alliance performance (Delbufalo, 2012;Pryor et al, 2023;Stevens et al, 2015;Villena et al, 2019). The multi-group analysis reveals that male-and female-headed households vary in their relational view in two ways.…”

“…Moreover, the imperfect business environments under which farmers interact and operate may obscure competitive performance. Contextual factors such as power asymmetry and (dis)trust influence how values are created and appropriated, as well as which resources and alliances contribute to better outcomes (Adetoyinbo et al, 2023;Eckerd et al, 2021;Odongo et al, 2017;Owot et al, 2022Owot et al, , 2023. Such complexities raise a critical concern about how resource-constrained actors can deploy organizational networks to generate and retain rents in uncertain business environments (Dentoni et al, 2020).…”