Trust In Buyer-supplier Relationships Research Articles

Agreements and Relationships of Market Actors for Mindanao Yellow Corn

ABSTRACT
 This study aimed to understand the relationships among the different actors involved in the handling practices of marketing yellow corn from Mindanao to Cebu and Manila focusing on the agreements and trust rating among the marketing actors. Descriptive analysis was employed in this study.
 Results showed that the agreements among the marketing actors were all informal arrangements. Asymmetric information was evident on the farmers in the marketing chain because they were not properly informed by the other actors along the chain on the quality requirement of the end users resulting only to high production costs.
 Results indicated that farmers trusted those they dealt with directly in the traditional system. Traders had some trust to both the farmers and processor/feedmillers because of the risks involved on his investment. Processors/integrators had complete trust with each other because they were the direct link from the source. Between the distributors and the feedmillers, trust was reciprocated because they were dependent to each other regarding the supply of corn.
 In the bulk handing system, farmers and processor/shippers had some trust with each other because processor/shippers dealt with several farmers to accumulate stocks same as the farmer who could choose whom to sell his produce.
 The frequent exchange of information and transparency of information creates trust in buyer-supplier relationships in the value chain thereby producing good quality corn. Moreover, aggressive promotion through trainings, publications and other media forms on the adoption of bulk handling system must be implemented by the government.
 Key words: agreement, asymmetric information, trust, transparency, reciprocity, corn, marketing

Different roles of control mechanisms in buyer-supplier conflict: An empirical study from China

Using transaction cost economics and contemporary insights from the literature on relationship contracts as a base, this paper focuses on how control mechanisms (contracts and trust) affect relationship conflicts in buyer-supplier relationships, and investigates the moderating effects of environmental uncertainty. Based on a sample of 162 Chinese buyers, this paper shows that contracts have a U-shaped effect on destructive conflict and an inverted U-shaped effect on constructive conflict, while trust has a negative effect on destructive conflict and a positive effect on constructive conflict. In addition, environmental uncertainty strengthens the U-shaped effect of contracts on destructive conflict, but weakens the inverted U-shaped effect of contracts on destructive conflict and strengthens the effect of trust on both types of relationship conflict. Our findings reveal the “double-edged sword” nature of contracts, especially the “dark side”, and highlight the importance of trust in buyer-supplier relationships in contexts of environmental uncertainty. These findings also have important implications for buyer-supplier relationship management research and managerial practices, particularly in regard to governance structure and conflict management in dynamic contexts.

Power/dependency & trust in buyer-supplier relationships: Embedding socially responsible processes

Socially responsible supply chains are one of the most current issues in supply chain management, yet has been subjected to limited systematic empirical research. In this paper we systematically an...

How Trust, Incentives and IT Shape Global Supplier Networks: Theory and Evidence from IT Services Procurement

Many theories address how IT affects the number of suppliers and supply chain governance. However, their predictions are at times contradictory and there is relatively little empirical evidence with which to evaluate them. We therefore develop an integrated, multi-period model of the optimal number of suppliers that combines search and coordination theory, transaction cost economics, and incomplete contracts theory, and we assess our theoretical predictions using a large new dataset on the global IT sourcing decisions of 1355 firms in 12 countries. Our empirical results support three key predictions about trust, IT and supply base size. First, investments in coordination IT, which reduce search and coordination costs, are correlated with using more suppliers, while use of vendor-specific IT is associated with fewer suppliers. Second, repeated relationships and trust play a major role in supply chain governance. As firms work with fewer suppliers they also engage in more repeated relationships. At the same time asset specificity and the need to induce relationship-specific investments are correlated not only with fewer suppliers, but also with a larger fraction of repeated relationships. Third, supply chain governance differs in human capital-intensive and physical capital-intensive industries. The correspondence between asset specificity and repetition is strong in physical capital-intensive firms and not significant in human capital-intensive firms, while the correspondence between fewer suppliers and more repeated relationships is strong in human capital-intensive firms but not significant in physical capital-intensive firms. This corroborates the differential implications of human and physical capital for bargaining power, contractual risk and trust in buyer-supplier relationships.

La confiance dans les relations interentreprises. Une revue des recherches quantitatives

Cet article presente les principaux resultats des recherches quantitatives sur la confiance dans les relations interentreprises. Les auteurs distinguent les etudes realisees selon leur objet de recherche (analyse des antecedents ou des consequences de la confiance) et leur niveau d'analyse (le partenaire, la dyade, l'echange). La synthese de ces etudes met en evidence le role central, positif et evolutif de la confiance dans les relations client-fournisseur

The Strategic Value of Buyer‐Supplier Relationships

This research investigates the determinants and outcomes of trust in buyer‐supplier relationships. Trust in a partner organization and in the individual counterpart are examined from both the buyers' and suppliers' perspectives. The method in which organizational and interorganizational management practices influence trust in buyer‐supplier relations and how trust at two levels relates to supplier performance are discussed. Data for the statistical analysis was gathered from a survey of 99 purchasing managers and their lead suppliers.