Trust and Supplier-buyer Relationships: An Empirical Analysis

Abstract

This paper investigates if regional differences are able to influence trust-based relationship with suppliers. It presents the results of a survey of 338 processing plants located in Western and Asian countries using structural equation modeling. Findings suggest that supplier involvement in quality is taken for granted, but it is not related to trust or partnership. Regional differences may also affect the development of partnership in the supply chain. The two main aspects are the levels of trust and timeliness in Asian companies. These aspects bringimplications for managers dealing with international supply chains.

Keywords

• trust
• supply chain partnership
• supply chain management
• survey.