Subjective trust and perceived risk influences on exchange performance in supplier–manufacturer relationships

Abstract

Theoretical and empirical contributions to relational exchange literature are offered by examining subjective trust and perceived risk in supplier–manufacturer relationships by using a relational view framework. The study explores the theoretical proposition that subjective trust and perceived risk in supplier–manufacturer relationships impact on exchange performance through the mediating effects of four relational rents sources: asset specificity, knowledge-sharing routines, resource-capabilities complementarity and effective governance. Data from a sample of fashion industry dyadic relationships, using a structural equation model, provides general support for the hypotheses. The results indicate that subjective trust and perceived risk are related constructs and play different roles in affecting exchange performance. The findings highlight the critical role played by asset specificity, knowledge-sharing routines and effective governance mechanisms as mediators in subjective trust and perceived risk relationships with exchange performance.