The Determinants of Local Suppliers’ Trust Towards Foreign Buyers

En Xie (), Yuan Li, Zhongfeng Su and Hock-Hai Teo
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En Xie: Xi’an Jiaotong University
Yuan Li: Xi’an Jiaotong University
Zhongfeng Su: Nanjing University
Hock-Hai Teo: National University of Singapore

Management International Review, 2010, vol. 50, issue 5, No 3, 585-611

Abstract: Abstract This study examines how local suppliers’ trust towards their foreign buyers is developed in international buyer-supplier cooperation. By identifying cognition- and affect-based trust as two primary dimensions of interfirm trust in international buyer-supplier cooperation, we investigate how the two types of trust are determined by structural and social exchange attributes, and whether the two types of trust are complementary. A survey and analysis of 155 buyer-supplier relationships between Chinese local suppliers and foreign buyers indicates that opening information exchange and institutionalization of cooperation have positive influence on cognition-based trust, while inter-firm diversity exerts a mixed impact on cognition-based trust. In addition, socialized interaction and assistance offered by foreign firms are strongly related to affect-based trust. We also find that Chinese firms’ cognition- and affect-based trust towards their foreign partners are complementary.

Keywords: Buyer-supplier cooperation; Trust; Sino-foreign (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (9)

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DOI: 10.1007/s11575-010-0050-3

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