Multiple Levels of Trust and Dependence on Supplier-Distributor Coordination: An Emperical Test

Abstract

Several activities are required for successful management of channels of distribution, including coordination or joint activities that take place between suppliers and distributors. Research indicates that trust and dependence are antecedent to coordination. However, research is scarce about how two levels of analysis (interpersonal and interfirm) of important channel antecedents operate together on the outcome of coordination. The conceptual model tested suggests that an interfirm level construct mediates its related interpersonal construct. Two antecedents of coordination at the interfirm level of analysis were tested: (1) the trust that firm A has in firm B (interfirm trust) and (2) firm A’s dependence on firm B (interfirm dependence). Two interpersonal variables were tested: (1) interpersonal trust and (2) interpersonal dependence. As hypothesized, results show that interfirm trust mediates interpersonal trust and that interfirm dependence mediates interpersonal dependence with the outcome of coordination.