Supply Chain Partner’s Perceptions of Trust & Risk

Abstract

Over many years, researchers from social science and management have argued that to develop sufficient trust between potential supply chain partners, a useful starting point is to develop strategies for encouraging perceptions of trustworthiness. Conversely, marketing theorists and practitioners have called for strategies by industry that aims to reduce risk perceptions for successful relationships. However, it is not clear in the literature which perception is more significant; trust or risk and from which perspective. Identification of such factors plays an important role in supply chain design and operation to decide whether the supply chain members should strive to develop trust perceptions or reduce risk perceptions in relationship. This paper has identified the common perspectives of trust and risk perception to address the issue of which perception is more significant from each perspective. Results of a survey of supply chain member’s trust and risk perceptions of the printing and packaging industry in the United Arab Emirates are presented.