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

  • Kwon I
  • Suh T
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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.

Author-supplied keywords

  • supply chain management; trust; information transf

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Authors

  • I W G Kwon

  • T Suh

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