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| Author: | Kwon, I-W.G. Suh, T. |
| Title: | Factors affecting the level of trust and commitment in supply chain relationships |
| Journal: | Journal of supply chain management
2004 : SPRING, VOL. 40:2, p. 4-14 |
| Index terms: | Supply chain Commitment Trust Models |
| Freeterms: | Partnership |
| Language: | eng |
| Abstract: | Trust is a critical factor fostering commitment among supply chain partners. This study attempts to fill the gap btw. the theoretical argument and empirical testing. Results using a comprehensive survey of supply chain practitioners indicate that a firm's trust in its supply chain partner is highly associated with both sides' specific asset investments (positively) and behavioural uncertainty (negatively). It is also found that information sharing reduces the level of behavioural uncertainty, which improves the level of trust. A partner's reputation in the market has a strong positive impact, whereas a partner's perceived conflict creates a strong negative impact on trust. Finally, the level of commitment is strongly related to the level of trust. |
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