Benchmarking trust signals in supply chain alliances: moving toward a robust measure of trust

Abstract

PurposeTrust is a vital ingredient in modern supply chain (SC) alliances. Yet, most measures of trust are rather simplistic. This paper aims to review the trust literature to identify the different facets of SC trust. A multi‐faceted measure of trust is then developed and used to benchmark the extent to which trust signals are used in alliance management.Design/methodology/approachMulti‐method: 50 preliminary interviews were conducted and 189 surveys were collected.FindingsBenchmarking buyers' trust‐building strategies reveals that most companies lack the know‐how and ability to develop high levels of trust. Most companies have implemented strategies to signal their performance capability, leading to a level of transactional trust. However, few companies have recognized the need to signal to their SC partners their commitment to the relationship – leaving them without the ability to establish the trust levels needed to drive breakthrough collaboration.Originality/valueThe paper introduces the importance of signaling trustworthiness in a SC context. It develops relationship commitment as an important dimension of trust, and explains the trust cycle within the context of an exchange cycle. It also takes steps toward developing a more robust and meaningful measure of SC trust.