Share:


Model of trust-based cooperative relationships in a supply chain

    Urszula Ryciuk   Affiliation
    ; Joanicjusz Nazarko   Affiliation

Abstract

The study aimed to find factors affecting the development of trust-based cooperative relationships and test the links between them. For this study, the research framework was based on the notion that a cooperative relationship in a supply chain required commitment, cooperation and trust among the supply chain partners, with trust as a critical element. The other assumption was that the selection of partners with specific qualities was conducive to building cooperative relationships. The research was conducted on a sample of 226 companies using the CATI technique. In the study structural equation modelling was used. The obtained results confirmed the positive impact of partner qualities on trust and adaptation, of adaptation on commitment, of trust on cooperation and commitment, and of commitment on cooperation. New measurement scales were used that expanded the range of factors that affect the successful building of trust-based cooperative relationships in a supply chain.

Keyword : supply chain, trust, commitment, cooperation, adaptation, partner qualities, confirmatory factor analysis (CFA), structural equation modelling (SEM), model

How to Cite
Ryciuk, U., & Nazarko, J. (2020). Model of trust-based cooperative relationships in a supply chain. Journal of Business Economics and Management, 21(5), 1225-1247. https://doi.org/10.3846/jbem.2020.12829
Published in Issue
Jul 3, 2020
Abstract Views
2593
PDF Downloads
1801
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Anderson, J., & Narus, J. (1990). A model of distributor firm and manufacturer firm working partnerships. Journal of Marketing, 54(1), 42–58. https://doi.org/10.2307/1252172

Anderson, J., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411–423. https://doi.org/10.1037/0033-2909.103.3.411

Bidault, F., & Castello, A. (2010). Why too much trust is death to innovation. MIT Sloan Management Review, 51(4), 33–38.

Blomqvist, K. (1997). The many faces of trust. Scandinavian Journal of Management, 13(3), 272–283. https://doi.org/10.1016/S0956-5221(97)84644-1

Brito, L. A. L., Brito, P. E. Z., & Hashiba, L. H. (2014). What type of cooperation with suppliers and customers leads to superior performance? Journal of Business Research, 67(5), 952–959. https://doi.org/10.1016/j.jbusres.2013.07.015

Bowen, N. K., & Guo, S. (2012). Structural equation modeling (1st ed.). Oxford University Press. https://doi.org/10.1093/acprof:oso/9780195367621.001.0001

Cao, M., & Zhang, Q. (2011). Supply chain collaboration: Impact on collaborative advantage and firm performance. Journal of Operation Management, 29, 163–180. https://doi.org/10.1016/j.jom.2010.12.008

Chen, J. V., Yen, D. C., Rajkumarc, T. M., & Tomochko, N. A. (2011). The antecedent factors on trust and commitment in supply chain relationships. Computer Standards & Interfaces, 33(3), 262–270. https://doi.org/10.1016/j.csi.2010.05.003

Claro, D. P., Hagelaar, G., & Omta, O. (2003). The determinants of relational governance and performance: how to manage business relationships? Industrial Marketing Management, 32(8), 703–716. https://doi.org/10.1016/j.indmarman.2003.06.010

Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd ed.). Psychology Press.

Covey, M. R. (2008). The speed of trust: The one thing that changes everything. Free Press.

Crişan, E. (2016). A Separation between supply chain management and supply chain governance. Review of International Comparative Management, 17(3), 240–249.

Currall, S. C., & Inkpen, A. C. (2002). A multilevel approach to trust in joint ventures. Journal of International Business Studies, 33, 479–495. https://doi.org/10.1057/palgrave.jibs.8491027

De Klerk, S. (2012). Establishing and developing business networks: The importance of trust. African Journal of Business Management, 6(18), 5845–5856. https://doi.org/10.5897/AJBM11.2637

Doney, P. M., & Cannon, J. P. (1997). An examination of the nature of trust in buyer-seller relationships. Journal of Marketing, 61(2), 35–61. https://doi.org/10.2307/1251829

Ejdys, J. (2018). Building technology trust in ICT application at a University. International Journal of Emerging Market, 13(5), 980–997. http://doi.org/10.1108/IJoEM-07-2017-0234

Ejdys, J., Ginevičius, R., Rozsa, Z., & Janoskova, K. (2019). The role of perceived risk and security level in building trust in e-government solutions. E & M Ekonomie a Management, 22(3), 220–235. https://doi.org/10.15240/tul/001/2019-3-014

Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.2307/3151312

Friman, M., Gärling, T., Millett, B., Mattsson, J., & Johnston, R. (2002). An analysis of international business-to-business relationships based on the Commitment–Trust theory. Industrial Marketing Management, 31(5), 403–409. https://doi.org/10.1016/S0019-8501(01)00154-7

Fukuyama, F. (1996), Trust: The social virtues and the creation of prosperity (1st ed.). Free Press.

Fynes, B., de Búrca, S., & Marshall, D. (2004). Environmental uncertainty, supply chain relationship quality and performance. Journal of Purchasing & Supply Management, 10(9), 179–190. https://doi.org/10.1016/j.pursup.2004.11.003

Ganesan, S. (1994). Determinants of long-term orientation in buyer-seller relationships. Journal of Marketing, 58(2), 1–19. https://doi.org/10.2307/1252265

Garson, G. D. (2015), Structural equation modelling. Statistical Associates Publishers.

Gellynck, X., & Molnár, A. (2009). Chain governance structures: The European traditional food sector. British Food Journal, 111(8), 762–775. https://doi.org/10.1108/00070700910980900

Goffin, K., Lemke, F., & Szwejczewski, M. (2006). An exploratory study of “close” supplier-manufacturer relationships. Journal of Operations Management, 24(2), 189–209. https://doi.org/10.1016/j.jom.2005.05.003

Goodman, L. E., & Dion, P. A. (2001). The determinants of commitment in the distributor-manufacturer relationship, Industrial Marketing Management, 30, 287–300. https://doi.org/10.1016/S0019-8501(99)00092-9

Gundlach, G., Achrol, R., & Mentzer, J. (1995). The structure of commitment in exchange. Journal of Marketing, 59(1), 78–92. https://doi.org/10.2307/1252016

Ha, B. C., Park, Y. K., & Cho, S. (2011). Suppliers’ affective trust and trust in competency in buyers: Its effect on collaboration and logistics efficiency. International Journal of Operations & Production Management, 31(1), 56–77. https://doi.org/10.1108/01443571111098744

Hardin, R. (2006). Trust (1st ed.). Polity Press.

Harrington, D. (2008). Confirmatory factor analysis (1st ed.). Oxford. https://doi.org/10.1093/acprof:oso/9780195339888.001.0001

Hausman, A., & Johnston, W. J. (2010). The impact of coercive and non-coercive forms of influence on trust, commitment, and compliance in supply chains. Industrial Marketing Management, 39, 519–526. https://doi.org/10.1016/j.indmarman.2009.05.007

Heffernan, T. (2004). Trust formation in cross-cultural business-to-business relationships. Qualitative Market Research: An International Journal, 7(2), 114–125. https://doi.org/10.1108/13522750410530020

Jüttner, U., Christopher, M., & Baker, S. (2007). Demand chain management – integrating marketing and supply chain management. Industrial Marketing Management, 36(3), 377–392. https://doi.org/10.1016/j.indmarman.2005.10.003

Kalwani, M. U., & Narayandas, N. (1995). Long-term manufacturer-supplier relationships: Do they pay off for supplier firms?. Journal of Marketing, 59(1), 1–16. https://doi.org/10.2307/1252010

Kwon, I.-W. G., & Suh, T. (2004). Factors affecting the level of trust and commitment in supply chain management. Journal of Supply Chain Management, 40(2), 4–14. https://doi.org/10.1111/j.1745-493X.2004.tb00165.x

Langfield-Smith, K. (2008). The relations between transactional characteristics, trust and risk in the start-up phase of a collaborative alliance. Management Accounting Research, 19(4), 344–364. https://doi.org/10.1016/j.mar.2008.09.001

Li, L., Ford, J. B., Zhai, X., & Xu, L. (2012). Relational benefits and manufacturer satisfaction: an empirical study of logistics service in supply chain. International Journal of Production Research, 50(19), 5445–5459. https://doi.org/10.1080/00207543.2011.636388

Liu, Y., Luo, Y., Huang, Y., & Yang, Q. (2017). A diagnostic model of private control and collective control in buyer-supplier relationships. Industrial Marketing Management, 63, 116–128. https://doi.org/10.1016/j.indmarman.2016.11.003

Lin, H.-F. (2014). The impact of socialization mechanisms and technological innovation capabilities on partnership quality and supply chain integration. Information Systems and e-Business Management, 12(2), 285–306. https://doi.org/10.1007/s10257-013-0226-z

Lui, S. S., Ngo, H., & Hon, A. H. Y. (2006). Coercive strategy in interfirm cooperation: Mediating roles of interpersonal and interorganizational trust. Journal of Business Research, 59(4), 466–474. https://doi.org/10.1016/j.jbusres.2005.09.001

Lui, S. S., Wong, Y., & Liu, W. (2009). Asset specificity roles in interfirm cooperation: Reducing opportunistic behavior or increasing cooperative behavior?. Journal of Business Research, 62(11), 1214–1219. https://doi.org/10.1016/j.jbusres.2008.08.003

Maloni, M., & Benton, W. C. (2000). Power influence in the supply chain. Journal of Business Logistics, 21(1), 49–73.

Martins, D. M., de Faria, A. C., Prearo, L. C., & Souza, A. A. G. (2017). The level of influence of trust, commitment, cooperation, and power in the interorganizational relationships of Brazilian credit cooperatives. Revista de Administração, 52(1), 47–58. https://doi.org/10.1016/j.rausp.2016.09.003

Mayer, R., Davis, J., & Schoorman, F. (1995). An integrative model of organizational trust. The Academy of Management Review, 20(3), 709–734. https://doi.org/10.2307/258792

Min, S., Roath, A. S., Daugherty, P. J., Genchev, S. E., Chen, H., Arndt, A. D., & Richey, R. G. (2005). Supply chain collaboration: what’s happening? The International Journal of Logistics Management, 16(2), 237–256. https://doi.org/10.1108/09574090510634539

Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3), 20–38. https://doi.org/10.2307/1252308

Nunnally, J. C., & Bernstein, I.H. (1994). The assessment of reliability. Psychometric Theory, 3, 248–292.

Nyaga, G., Whipple, J., & Lynch, D. (2010), Examining supply chain relationships: do buyer and supplier perspectives on collaborative relationships differ? Journal of Operations Management, 28(2), 101–114. https://doi.org/10.1016/j.jom.2009.07.005

Patrucco, A., Moretto, A., Luzzini, D., & Glas, A. H. (2020). Obtaining supplier commitment: antecedents and performance outcomes. International Journal of Production Economics, 220, 107449. https://doi.org/10.1016/j.ijpe.2019.07.022

Ploetner, O., & Ehret, M. (2006). From relationships to partnerships – new forms of cooperation between buyer and supplier. Industrial Marketing Management, 35(1), 4–9. https://doi.org/10.1016/j.indmarman.2005.08.006

Powers, T. L., & Reagan, W. R (2007). Factors influencing successful buyer-seller relationships. Journal of Business Research, 60(12), 1234–1242. https://doi.org/10.1016/j.jbusres.2007.04.008

Redondo, Y. P., & Fierro, J. J. C. (2008). Educational level as moderating element of long-term orientation of supply relationships. Journal of Marketing Management, 24(3–4), 383–408. https://doi.org/10.1362/026725708X306158

Rokkan, A. I., Heide, J. B., & Wathne, K. H. (2003). Specific investments in marketing relationships: Expropriation and bonding effects. Journal of Marketing Research, 15(2), 210–224. https://doi.org/10.1509/jmkr.40.2.210.19223

Ruyter, K., Moorman, L., & Lemmink, J. (2001). Antecedents of commitment and trust in customersupplier relationships in high technology markets. Industrial Marketing Management, 30(3), 272– 273. https://doi.org/10.1016/S0019-8501(99)00091-7

Ryciuk, U. (2017). Identification of factors related to trust formation in construction supply chains. Procedia Engineering, 182, 627–634. https://doi.org/10.1016/j.proeng.2017.03.168

Ryu, S., Park, J. E., & Min, S. (2007). Factors of determining long-term orientation in interfirm relationships. Journal of Business Research, 60(12), 1225–1233. https://doi.org/10.1016/j.jbusres.2006.09.031

Sahay, B. (2003). Understanding trust in supply chain relationships. Industrial Management & Data Systems, 103(8), 553–563. https://doi.org/10.1108/02635570310497602

Saleh, M. A., Ali, M. Y., & Andaleeb, S. S. (2014a). Explaining industrial importers’ commitment from an emerging market perspective: Theoretical and managerial insights. Journal of Business & Industrial Marketing, 29(1), 45–62. https://doi.org/10.1108/JBIM-09-2011-0116

Saleh, M. A., Ali, M. Y., & Mavondo, F. T. (2014b). Drivers of importer trust and commitment: Evidence from a developing country. Journal of Business Research, 67(12), 2523–2530. https://doi.org/10.1016/j.jbusres.2014.03.010

Sarkar, M. B., Aulakh, P. S., & Cavusgil, S. T. (1998). The strategic role of relational bonding in interorganizational collaborations: An empirical study of the global construction industry. Journal of International Management, 4(2), 85–107. https://doi.org/10.1016/S1075-4253(98)00009-X

Semeijn, J., Cao, L., & Ghijsen, P. W. Th. (2006, January). Trust and its antecedents in supply chains: Evidence from a German buyers – Chinese suppliers’ perspective [conference presentation]. The Fifth Annual International Business and Economy Conference, Honolulu, USA.

Schmidt, Ch. G., & Wagner, S. M. (2019). Blockchain and supply chain relations: A transaction cost theory perspective. Journal of Purchasing and Supply Management, 25(4), 100552. https://doi.org/10.1016/j.pursup.2019.100552

Spekman, R. E., Kamauff, J. W., & Myhr, N. (1998). An empirical investigation into supply chain management: A perspective on partnerships. International Journal of Physical Distribution & Logistics Management, 28, 630–650. https://doi.org/10.1108/13598549810215379

Stank, T. P., & Daugherty, P. J. (1997). The impact of operating environment on the formation of cooperative logistics relationships. Transportation Research Part E: Logistics and Transportation Review, 33(1), 53–65. https://doi.org/10.1016/S1366-5545(96)00005-1

Su, Q., Song, Y., Li, Z., & Dang, J. (2008). The impact of supply chain relationship quality on cooperative strategy. Journal of Purchasing and Supply Management, 14, 263–272. https://doi.org/10.1016/j.pursup.2008.08.002

Suh, T., & Houston, M. B. (2010). Distinguishing supplier reputation from trust in buyer–supplier relationships. Industrial Marketing Management, 39(5), 744–751. https://doi.org/10.1016/j.indmarman.2010.02.013

Svensson, G. (2001). Perceived trust towards suppliers and customers in supply chains of the Swedish automotive industry. International Journal of Physical Distribution & Logistics Management, 31(9), 647–662. https://doi.org/10.1108/09600030110408152

Swierczek, A. (2019). Examining the link between the governance mechanisms and supply chain performance – an empirical study within the triadic context. Engineering Management in Production and Services, 11(3), 117–131. https://doi.org/10.2478/emj-2019-0026

Szymczak, M., Ryciuk, U., Leończuk, D., Piotrowicz, W., Witkowski, K., Nazarko, J., & Jakuszewicz, J. (2018). Key factors for information integration in the supply chain - measurement, technology and information characteristics. Journal of Business Economics and Management, 19(5), 759–776. https://doi.org/10.3846/jbem.2018.6359

Talay, M. B., & Akdeniz, M. B. (2014). In time we trust?: The effects of duration on the dynamics of trust-building processes in inter-organizational relationships. Strategic Management Review, 8(1), 77–90.

Tanskanen, K., & Aminoff, A. (2015). Buyer and supplier attractiveness in a strategic relationship – a dyadic multiple-case study. Industrial Marketing Management, 50, 128–141. https://doi.org/10.1016/j.indmarman.2015.04.011

Tian, A. (2018). The impact of supply chain cooperative relationship on performance: A knowledge management perspective. Journal of Service Science and Management, 11(1), 44–55. https://doi.org/10.4236/jssm.2018.111005

Ting, S., Chen, C., & Bartholomew, D. (2007). An integrated study of entrepreneurs’ opportunism. Journal of Business & Industrial Marketing, 22(5), 322–335. https://doi.org/10.1108/08858620710773459

Varoutsa, E., & Scapens, R. (2015). The governance of inter-organisational relationships during different supply chain maturity phases. Industrial Marketing Management, 46(1), 68–82. https://doi.org/10.1016/j.indmarman.2015.01.006

Williamson, O. (1979). Transaction-cost economics: The governance of contractual relations. The Journal of Law & Economics, 22(2), 233–261. https://doi.org/10.1086/466942

Wong, P. S. P., & Cheung, S. O. (2005). Structural Equation Model of trust and partnering success. Journal of Management in Engineering, 21(2), 70–80. https://doi.org/10.1061/(ASCE)0742-597X(2005)21:2(70)

Wong, P. S. P., Cheung, S. O., & Ho, P. K. M. (2005). Contractor as trust initiator in construction partnering – prisoner’s dilemma perspective. Journal of Construction Engineering and Management, 131(10), 1045–1053. https://doi.org/10.1061/(ASCE)0733-9364(2005)131:10(1045)

Wood, G., & McDermott, P. (1999). Searching for trust in the UK construction industry: An interim view [conference presentation]. The CIB W92 International Procurement Conference, AIT, Thailand.

Wu, W.-Y., Chiag, C.-Y., Wu, Y.-J., & Tu, H.-J. (2004). The influencing factors of commitment and business integration on supply chain management. Industrial Management & Data Systems, 104(4), 322–333. https://doi.org/10.1108/02635570410530739

Yoon, J., & Moon, J. (2019). The moderating effect of buyer purchasing strategy on the relationship between supplier transaction-specific investment and supplier firm performance. Journal of Business Research, 99, 516–523. https://doi.org/10.1016/j.jbusres.2017.08.022

Xiao, Y., Zheng, X., Pan, W., & Xie, X. (2010). Trust, relationship commitment and cooperative performance: supply chain management. Chinese Management Studies, 4(3), 231–243. https://doi.org/10.1108/17506141011074129

Yeung, J. H. Y., Selen, W., Zhang, M., & Huo, B. (2009). The effects of trust and coercive power on supplier integration. International Journal of Production Economics, 120(1), 66–78. https://doi.org/10.1016/j.ijpe.2008.07.014

Zhou, G., Fei, Y., & Hu, J. (2016). The analysis of vertical transaction behavior and performance based on automobile brand trust in supply chain. Discrete Dynamics in Nature and Society, 4, 1–13. https://doi.org/10.1155/2016/4793851