Impact of Information Sharing, Collaboration and Trust on Vendor–Buyer Relationship

Abstract

This article discovers the vendor–buyer relations in the automotive and constituent industries. More precisely, it examines the cooperative trade associations between all the firms dealing with automobile sector. This article examines the extent of information sharing, trust and collaboration in the commercial networks involved and tries to identify which construct influences the establishment and expansion of channel members’ affiliation. In particular, whether interaction among supply chain members is directly influenced by these constructs is explored and inferences are drawn. The research method has cross-sectional design and is descriptive and exploratory in nature. This study establishes a number of results: (1) Collaboration cannot be presumed to take place ‘naturally’, but it needs collective efforts by both the parties. (2) Information sharing is indispensable for the development of trust and long-term orientation of collaborative relationships. (3) Trust and collaboration are dependent on information sharing among firms, and trust alone cannot take place without information sharing. Information sharing assists the partners to establish long-term orientation of their relationship.