Managing the Tension between Trust and Confidentiality in Mobile Supply Chains

Abstract

This research investigates the tension between trust and confidentiality in Mobile Supply Chains (MSCs), where a production asset that is owned by one of the partners is outsourced to another partner of the supply chain for the production of goods, chemicals, or pharmaceuticals. The novelty of the MSC concept is to be found in its innovative and sustainable approach to production and operation processes in supply chains. Implementation of the MSC model could, however, raise trust and confidentiality concerns. The interplay of trust and confidentiality, or preservation of information privacy, between partners plays a central role in the supply chains, particularly because they are genuinely dependent on each other. Qualitative data analysis was used, in which semi-structured interviews with the experts from the chemical and pharmaceutical industries in Germany were conducted to investigate the tension between trust and confidentiality, and important factors affecting it. The results of the study present four different integration scenarios, namely, the low-quality, conservative, grey-box, and innovation scenarios, which consider different levels of trust, confidentiality and information sharing. Subsequently, the tension between trust and confidentiality is analyzed within these scenarios, and three effective strategies which encourage partners to balance the tension between trust and confidentiality are proposed. The study indicates that the balance between trust and confidentiality can be maintained in some scenarios when critical factors such as transparency, trust negotiation, and a reward-sharing system are present.