Experimental Analysis of Cultural Factors on Trust in Global Supply Chain Management

Abstract

Trust influences the stability and development of the global supply chain and is a unique phenomenon across different cultures. This study aimed to investigate how culture influences trust and the consequential global supply chain through the computerized supply chain management experiment, which was conducted with a two-echelon supply chain involving retailers and wholesalers. In the experiment, forty-two participants with supply chain management background from seventeen countries were asked to take the role of wholesalers in the supply chain and to develop ordering strategies in response to the quantity forecast generated by a computer. The uncertainty avoidance index proposed by Hofstede was applied to quantify the definition of culture in this study. Results indicated that participants from countries with low uncertainty avoidance index present a higher trust level than those with a high uncertainty avoidance index. This study can offer managers a theoretical backup on how to best utilize cultural information to develop and maintain successful global supply chain relationships.