Trust-supply chain performance relationships: unraveling the mediating role of transaction cost attributes in agribusiness SMEs

Abstract

The mediation effect of transaction cost attributes on the trust-supply chain performance relationships has remained largely under-explored. Particularly, little is known about the mediating role of information sharing, uncertainty and transaction frequency on the trust-supply chain performance relationships in the agri-food sector. Based on the transaction cost theory, this study used logistic regression to investigate the mediating role of transaction cost attributes on the trust-supply chain performance relationships. Data were collected from 396 agribusiness small and medium-sized enterprises, i.e., farmers (n = 203) and traders (n = 193) in Northern Uganda. Analysis was performed using logistic regression in SPSS version 23 and Amos version 23. The results show that, while trust positively influences supply chain performance, information sharing is the only transaction cost attribute that mediates the relationship between trust and supply chain performance. Agribusiness managers, therefore, need to not only renew the effort of sharing accurate and timely information regarding the market's demand for specific volumes and quality of agricultural products and market trends and storage facilities but also utilize the information to become competitive and improve supply chain performance.

Analysis of the Effect of Trust and Information Sharing on Supply Chain Performance with Innovation as a Mediating Variable (Study on gula semut SMEs in Kulon Progo Regency)

“…So, it can be concluded that trust has a significant positive effect on supply chain performance. This research is in accordance with research from Charterina et al (2018); Gwaltu and Mrisho (2023); Jajja et al (2014); Owot et al (2023); Panayides & Lun (2009) and rejects research from Villena et al (2011) where trust has a negative effect on supply chain performance.…”

“…So, it can be concluded that information sharing has a significant positive effect on supply chain performance. This research is in accordance with research from Kankam et al (2023), Kusmantini et al (2020), Owot et al (2023), Setyawan Firmansyah & Siagian (2022) and rejects research from Ahmed (2022) where information sharing has no effect on supply chain performance, because the practice of sharing information between SMEs and suppliers is not yet fully integrated. Sharing information that is not supported by the development of an integrated information system and commitment between partners to share information accurately will result in the impact of various information on supply chain performance being not significant.…”

“…Some studies warn of the negative effects of trust where over-trust leads to relational inertia and increases the likelihood of supply chain members using deception and coercion strategies for their own benefit (Villena et al, 2011). Trust and information sharing can also improve supply chain performance (Owot et al, 2023). The organization's supply chain performance is more effective and efficient if the organization pays attention to information sharing (Kusmantini et al, 2020).…”

Critical Factors Affecting Trust in the Wine Supply Chain in Greece: A Grey DEMATEL Approach

“…However, it is critical to comprehend the degree of trust attributed to chain participants, as this will allow individual chains to formulate the best approaches for bolstering customer assurance about food safety [21]. Supply chain managers are becoming more aware of the need for trust as a vital component of supply chain performance due to the rapid changes in the agri-food supply chains brought about by globalization, food quality, and food safety concerns and requirements [55].…”

Modernization, education, and fish supply chain performance of Akit isolated tribe: the role of trust as mediator

“…Osman & Sentosa, 2013;Owot et al, 2022).Trust plays a signi cant role in mediating the relationship between internal integration (logistics, marketing, and production) and time-oriented supply chain performance(Sayan et al, 2021).In the shing industry, research by Yulinda et al (2023) found that the role of trust as a moderator is very signi cant in the in uence of business capital, production factors, and government support on the marine sh supply chain in Indragiri Hilir. According to Septiani et al (2021), sh production factors, especially shing boats and shing gear, are affected by sheries modernization.…”