Trust, commitment and relationships in supply chain management: a path analysis

Trust, commitment and relationships in supply chain management: a path analysis Purpose – The primary purpose of this study is to examine the relationships between the level of trust and several relevant constructs drawn from transaction cost analysis (such as asset specificity, behavioral uncertainty, and partner's opportunism) and social exchange theory (informational sharing). Design/methodology/approach – A comprehensive questionnaire based on various theories on trust and commitment was mailed in 2001 to supply chain practitioners in the Midwest region. A total of 171 valid returns were received out of 1,800 mailings (9.5 percent). A path analysis was used to estimate parameters or relationship between relevant constructs and trust, and trust with the level of commitment. Findings – A firm's trust in their supply chain partner is highly associated with both parties’ specific asset investments and social exchange theory. Information sharing has a primary impact on reducing (improving a partner's uncertainty behavior which, in turn, would improve the level of trust. Finally, the level of commitment is strongly related to the level of trust, supporting Morgan and Hunt's hypothesis. Research limitations/implications – This research used supply chain practitioners in one region as a target population. It is highly recommended to duplicate this study in other regions to verify the findings. Originality/value – This is the first research paper linking various variables to trust and trust to commitment in supply chain management using path model. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Supply Chain Management: An International Journal Emerald Publishing

Trust, commitment and relationships in supply chain management: a path analysis

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Publisher
Emerald Publishing
Copyright
Copyright © 2005 Emerald Group Publishing Limited. All rights reserved.
ISSN
1359-8546
DOI
10.1108/13598540510578351
Publisher site
See Article on Publisher Site

Abstract

Purpose – The primary purpose of this study is to examine the relationships between the level of trust and several relevant constructs drawn from transaction cost analysis (such as asset specificity, behavioral uncertainty, and partner's opportunism) and social exchange theory (informational sharing). Design/methodology/approach – A comprehensive questionnaire based on various theories on trust and commitment was mailed in 2001 to supply chain practitioners in the Midwest region. A total of 171 valid returns were received out of 1,800 mailings (9.5 percent). A path analysis was used to estimate parameters or relationship between relevant constructs and trust, and trust with the level of commitment. Findings – A firm's trust in their supply chain partner is highly associated with both parties’ specific asset investments and social exchange theory. Information sharing has a primary impact on reducing (improving a partner's uncertainty behavior which, in turn, would improve the level of trust. Finally, the level of commitment is strongly related to the level of trust, supporting Morgan and Hunt's hypothesis. Research limitations/implications – This research used supply chain practitioners in one region as a target population. It is highly recommended to duplicate this study in other regions to verify the findings. Originality/value – This is the first research paper linking various variables to trust and trust to commitment in supply chain management using path model.

Journal

Supply Chain Management: An International JournalEmerald Publishing

Published: Feb 1, 2005

Keywords: Supply chain management; Trust; Information transfer

References

  • Price, authority, and trust: from ideal types to plural forms
    Bradach, J.L.; Eccles, R.G.
  • The contingent effect of specific asset investments on joint action in manufacturer‐supplier relationships: an empirical test of the moderating role of reciprocal asset investments, uncertainty, and trust
    Joshi, A.W.; Stump, R.L.
  • Antecedents of purchasing concentration: a transaction cost explanation
    Stump, R.L.
  • Relational governance as an interorganizational strategy: an empirical test of the role of trust in economic exchange
    Zaheer, A.; Venkatraman, N.

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