The role of mutual trust in supply chain management: deriving from attribution theory and transaction cost theory

Sunhee Youn, Woosang Hwang and Ma Ga Yang

International Journal of Business Excellence, 2012, vol. 5, issue 5, 575-597

Abstract: Information sharing practises among the supply chain partners enhance supply chain flexibility. The exchange of information sharing, however, may not ensure the expected quality outcomes of information. To test the mediating role of mutual trust between information sharing and information quality, this study uniquely examines four contexts of information sharing (receiving information from customers; receiving information from suppliers; providing information to customers; and providing information to suppliers). With two theoretical lenses, attribution theory and transaction cost theory, this study empirically investigates the interrelationships among information sharing, information quality, mutual trust, and supply chain flexibility with data from 74 Korean steel firms. The results suggest that: 1) attribution error (i.e., self-service bias) is likely to happen when it comes to providing information context; 2) mutual trust plays a crucial role in transferring information sharing into information quality. Implications as well as future research opportunities are provided.

Keywords: information sharing; information quality; mutual trust; supply chain flexibility; attribution theory; transaction cost theory; South Korea; steel industry; supply chain partners; expected outcomes; quality outcomes; mediating roles; customers; information receipt; suppliers; information provision; interrelationships; attribution error; self-service bias; information contexts; business excellence; SCM; supply chain management; global supply chains; challenges; opportunities. (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (3)

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