‘All you need is trust’: examining trust, information sharing, and supplier performance perception in SMEs from a social exchange perspective

Abstract

The purpose of this study is to substantiate the interrelationships between the perceived value of supplier performance, trust, and information sharing in the context of small and medium-sized agribusiness enterprises (SMEs), in an emerging economy. A survey was conducted to collect data from 83 licensed orchid flower exporters (buyer firms) in Thailand. The collected data was used to test hypotheses using path analysis. The empirical findings provide valuable insights into trust in buyer-supplier relationships from a social exchange perspective. Specifically, the study confirms that a high level of perceived value of supplier performance leads to greater trust between the parties, which in turn indirectly increases the level of information sharing. This implies and validates that trust plays a crucial role in fostering positive outcomes and strengthening buyer-supplier relationships. Building mutual trust between buyers and suppliers can ultimately result in more successful supply chain performance. The study suggests that small and medium orchid flower exporters build trust with key suppliers to secure valuable resources and capabilities by sharing information. This study contributes by investigating the sources of trust, the relationship between trust and the mediating role that it plays in linking the perceived value of supplier performance and information sharing within SMEs.

Keywords

• Supplier performance
• trust
• information sharing
• social exchange theory
• agribusiness SMEs
• path analysis