Significance of Cross-cultural Trust in Streamlining Supply-chains for Global Enterprises

R. Ray Gehani
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R. Ray Gehani: University of Akron, College of Business Administration, Akron, Ohio

Global Business Review, 2000, vol. 1, issue 2, 173-192

Abstract: In high-velocity global markets, streamlining enterprise supply-chains and increasing trust can reduce high transaction costs. In this article, we integrate previous research studies on the evolution of supply-chains for global enterprises and the role of trust in inter-organizational transactions. We propose that the streamlining of supply-chains with low intermediation is most likely to be associated with the selection of tristworthy agents, deployment of trust-building interactions, and the institutionalization of trust in the participating enterprise. Future implications for researchers and practitioners include the study of resistance to change for implementing streamlined supply-chains.

Date: 2000
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Persistent link: https://EconPapers.repec.org/RePEc:sae:globus:v:1:y:2000:i:2:p:173-192

DOI: 10.1177/097215090000100202

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