Abstract

Background: Positive supplier relationships result in trust and eventually sustainability. However, the opposite seems to be true in the South African automotive supply chain relationships that are characterised by conflict. Literature states that in the absence of trust, sustainability is compromised. The problem pertains to the erosion of trust because of conflict between suppliers in the South African automotive supply chains. Objectives: The main purpose of the research was to address the question: What are the antecedents of trust between buyer and seller within the South African automotive supply chains? The primary objective was to determine the value-adding antecedents of trust followed by presenting the antecedent with the strongest correlation towards trust. Method: The study was explanatory and descriptive by nature to determine relationships between constructs. The empirical research utilised a quantitative census, thus targeting all senior managers representing Tier 1 automotive component suppliers. A deductive approach through a structured close-ended questionnaire tested the managers’ perception on trust. The response rate was 81.4% with 144 participants. After factor analysis, a path analysis was compiled, depicting the antecedents of trust. Results: The study found that antecedents showing the strongest correlation with trust were the core offering, inclusive of product delivery and quality followed by personal interaction that forms part of the sourcing process. Conclusion: The research study makes a theoretical contribution by presenting a conceptual structure on trust by depicting its antecedents. Managerial contributions include recommendations on how to enhance trust through a relational governance strategy.

Highlights

  • The sustainability of automotive supply chains in South Africa is important as this industry is substantially contributing 6.9% towards the country’s gross domestic product (AIEC 2018:5)

  • Because literature invites more research on trust (Akrout & Diallo 2017:159), within supply chains (Batsaikhan 2017:3), the research reported on in this article investigated the research question: What are the antecedents of trust between buyer and seller within the South African automotive supply chains? The primary objective of the research was to determine the antecedents of trust, while the secondary objective was to utilise a path analysis to determine the antecedent(s) that have the strongest correlation with trust

  • The research question under investigation was: What are the antecedents of trust between buyer and seller within the South African automotive supply chains? trust was established by utilising a three-item scale obtained from the seminal research by Morgan and Hunt (1994)

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Summary

Introduction

The sustainability of automotive supply chains in South Africa is important as this industry is substantially contributing 6.9% towards the country’s gross domestic product (AIEC 2018:5). Global pressures, coupled with suppliers that act opportunistically through late deliveries, poor service, quality defects and limited commitment, eventually culminate in strained relationships (Herko & Hanna 2017:87; Hiraoka 2013:2; Manzouri, Ab Rahman & Arshad 2015:85–86; Steinle, Schiele & Ernst 2014:124). These strained relationships result in a lack of trust between the supplier and the buyer (Steinle et al 2014:124). The problem pertains to the erosion of trust because of conflict between suppliers in the South African automotive supply chains

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