Paper info: How Transaction Cost Variables and Social Exchange Variables Affect Trust in Supply Chain Relationship
Title
How Transaction Cost Variables and Social Exchange Variables Affect Trust in Supply Chain Relationship
Authors
Nizar Brahim,
Noémi Piricz
,
Seock-Jin Hong
, Thierry Roques and Tibor Mandjai
Noémi Piricz
College of Dunaújváros
Hungary
Seock-Jin Hong
Bordeaux Business School
France
Place of Publication
The paper was published at the 27th IMP-conference in Glasgow, Scotland in 2011.
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Abstract
ABSTRACT
This article is based on the assumption that trust, as a critical factor, promotes the commitment between partners in the supply chain and improves the chances of return on supply chain success. In contrast, a lack of trust between them often increases transaction costs and implies inefficiency.
The results of this research, based on a series of comprehensive studies conducted among supply chain practitioners shows how transaction cost variables (replaceability, asset specificity, behavioral uncertainty) and social exchange variables (perceived satisfaction, partner reputation, perceived conflict) affect trust-commitment variables in partnership based supply chain relationships. The authors conducted surveys in 5 countries (France, Hungary, Tunisia, USA and Korea) and applied statistical methods as well as a structural equation model to find out the results. Among the findings, the research indicates that a firm's trust in their supply chain partner is highly associated with both sides' specific asset investments and behavioral uncertainty.
Keywords: Trust, Performance, Partnerships, Supply Chain, Transaction Cost, Social exchange.
This article is based on the assumption that trust, as a critical factor, promotes the commitment between partners in the supply chain and improves the chances of return on supply chain success. In contrast, a lack of trust between them often increases transaction costs and implies inefficiency.
The results of this research, based on a series of comprehensive studies conducted among supply chain practitioners shows how transaction cost variables (replaceability, asset specificity, behavioral uncertainty) and social exchange variables (perceived satisfaction, partner reputation, perceived conflict) affect trust-commitment variables in partnership based supply chain relationships. The authors conducted surveys in 5 countries (France, Hungary, Tunisia, USA and Korea) and applied statistical methods as well as a structural equation model to find out the results. Among the findings, the research indicates that a firm's trust in their supply chain partner is highly associated with both sides' specific asset investments and behavioral uncertainty.
Keywords: Trust, Performance, Partnerships, Supply Chain, Transaction Cost, Social exchange.