The determinants of trust in supplier–automaker relations in the US, Japan, and Korea: A retrospective

Abstract

This retrospective on the Dyer and Chu (2000) article “The determinants of trust in supplier–automaker relationships in the US, Japan, and Korea” attempts to accomplish a number of objectives. First, the paper examines the key findings and impact of the original paper, and provides additional insights behind the original research. Notably, we further clarify why interpersonal trust between organizational boundary spanners does not translate into inter-organizational trust – and why inter-organizational trust is often based upon processes. Second, the paper briefly discusses relevant research on inter-firm trust since 2000, noting that research has shown the contingent value of trust, and notably that it is more important when asset specificity and uncertainty are high. Third, we discuss what has happened in the automotive industry over the past 15 years with regard to trust in supplier–buyer relationships. We show a correlation between automaker trustworthiness and automaker market-share performance and suggest a causal link, since some automakers (e.g., Hyundai, Kia) have been increasing trust with suppliers and then improving market performance. Finally, the retrospective discusses opportunities for future research on the topic of trust in inter-organizational relationships.