Impact of Buyer's Ethical Environment on Supplier's Performance: A Trust-based Mediation Model

Abstract

This research aims to analyze the impact of buyer ethical environment on supplier performance with mediating role of trust. For this purpose, 177 responses were collected by surveying employees of procurement departments of the manufacturing and service industry. The finding of this research shows that buyers’ ethical environment has a strong positive impact on supplier performance, considering trust as a mediator. Similarly, the buyers’ ethical environment has a positive impact on the trust in a buyer-supplier relationship. The findings of this research can help procurement managers and executives to enhance supplier performance in their procurement department by facilitating suppliers and strengthening their trust in buyer-supplier relationships.