IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v9y2017i12p2303-d122543.html
   My bibliography  Save this article

The Role Played by Trust and Its Effect on the Competiveness of Logistics Service Providers in Hungary

Author

Listed:
  • Judit Oláh

    (Faculty of Economics and Business, Institute of Applied Informatics and Logistics, University of Debrecen, 4032 Debrecen, Hungary)

  • Attila Bai

    (Faculty of Economics and Business, Institute of Applied Economics Sciences, University of Debrecen, 4032 Debrecen, Hungary)

  • György Karmazin

    (Faculty of Business Management, Pallas Athéné University, 5000 Szolnok, Hungary)

  • Péter Balogh

    (Faculty of Economics and Business, Institute of Sectoral Economics and Methodology, University of Debrecen, 4032 Debrecen, Hungary)

  • József Popp

    (Faculty of Economics and Business, Institute of Sectoral Economics and Methodology, University of Debrecen, 4032 Debrecen, Hungary)

Abstract

This research focuses on the role of trust and the impact of its level on the revenue, earnings before tax and the degree of flexibility of logistics service providers (LSPs). More specifically, the role of the executive manager is examined in relation to the impact of business relationships (trust levels) within and between organizations. In addition, the analysis covers the development of revenue, earnings before tax and degree of flexibility of logistics service providers in the context of the role of the head manager. The data were collected from 51 logistics service providers in Hungary. The results show that the level of trust established in the organization (with the employees, co-workers etc.) has a positive impact on the earnings before tax. Furthermore, this paper confirms that the trust executive managers establish around them is an important performance factor which even consumers perceive and that it has major significance in terms of degree of flexibility. This research further increases our understanding of the role and importance of trust as a strategic success factor for LSPs.

Suggested Citation

  • Judit Oláh & Attila Bai & György Karmazin & Péter Balogh & József Popp, 2017. "The Role Played by Trust and Its Effect on the Competiveness of Logistics Service Providers in Hungary," Sustainability, MDPI, vol. 9(12), pages 1-22, December.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:12:p:2303-:d:122543
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/9/12/2303/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/9/12/2303/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Huemer, Lars, 2012. "Unchained from the chain: Supply management from a logistics service provider perspective," Journal of Business Research, Elsevier, vol. 65(2), pages 258-264.
    2. La Porta, Rafael, et al, 1997. "Trust in Large Organizations," American Economic Review, American Economic Association, vol. 87(2), pages 333-338, May.
    3. Kelle, Peter & Akbulut, Asli, 2005. "The role of ERP tools in supply chain information sharing, cooperation, and cost optimization," International Journal of Production Economics, Elsevier, vol. 93(1), pages 41-52, January.
    4. Golden, William & Powell, Philip, 2000. "Towards a definition of flexibility: in search of the Holy Grail?," Omega, Elsevier, vol. 28(4), pages 373-384, August.
    5. Photis M Panayides & Meko So, 2005. "The Impact of Integrated Logistics Relationships on Third-Party Logistics Service Quality and Performance," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 7(1), pages 36-55, March.
    6. Candace Young-Ybarra & Margarethe Wiersema, 1999. "Strategic Flexibility in Information Technology Alliances: The Influence of Transaction Cost Economics and Social Exchange Theory," Organization Science, INFORMS, vol. 10(4), pages 439-459, August.
    7. Saleh, M. Abu & Ali, M. Yunus & Mavondo, Felix T., 2014. "Drivers of importer trust and commitment: Evidence from a developing country," Journal of Business Research, Elsevier, vol. 67(12), pages 2523-2530.
    8. Yeung, Jeff Hoi Yan & Selen, Willem & Zhang, Min & Huo, Baofeng, 2009. "The effects of trust and coercive power on supplier integration," International Journal of Production Economics, Elsevier, vol. 120(1), pages 66-78, July.
    9. Moon, Karen Ka-Leung & Yi, Candace Ying & Ngai, E.W.T., 2012. "An instrument for measuring supply chain flexibility for the textile and clothing companies," European Journal of Operational Research, Elsevier, vol. 222(2), pages 191-203.
    10. Akbar Zaheer & Bill McEvily & Vincenzo Perrone, 1998. "Does Trust Matter? Exploring the Effects of Interorganizational and Interpersonal Trust on Performance," Organization Science, INFORMS, vol. 9(2), pages 141-159, April.
    11. Blomqvist, Kirsimarja, 1997. "The many faces of trust," Scandinavian Journal of Management, Elsevier, vol. 13(3), pages 271-286, September.
    12. Kurt T. Dirks & Donald L. Ferrin, 2001. "The Role of Trust in Organizational Settings," Organization Science, INFORMS, vol. 12(4), pages 450-467, August.
    13. Panayides, Photis M. & Venus Lun, Y.H., 2009. "The impact of trust on innovativeness and supply chain performance," International Journal of Production Economics, Elsevier, vol. 122(1), pages 35-46, November.
    14. Christoph Schumacher, 2006. "Trust – A Source of Success in Strategic Alliances?," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 58(3), pages 259-278, July.
    15. Geyskens, I. & Steenkamp, J.E.B.M. & Scheer, L.K. & Kumar, N., 1996. "The effects of trust and interdependence on relationship commitment : A trans-Atlantic study," Other publications TiSEM ef7c8d6c-963d-4ee7-8576-9, Tilburg University, School of Economics and Management.
    16. Roehrich, Jens K. & Lewis, Michael A. & George, Gerard, 2014. "Are public–private partnerships a healthy option? A systematic literature review," Social Science & Medicine, Elsevier, vol. 113(C), pages 110-119.
    17. Jeffrey H. Dyer & Wujin Chu, 2003. "The Role of Trustworthiness in Reducing Transaction Costs and Improving Performance: Empirical Evidence from the United States, Japan, and Korea," Organization Science, INFORMS, vol. 14(1), pages 57-68, February.
    18. J. Stuart Evans, 1991. "Strategic Flexibility For High Technology Manoeuvres: A Conceptual Framework," Journal of Management Studies, Wiley Blackwell, vol. 28(1), pages 69-89, January.
    19. Hau L. Lee & Corey Billington, 1995. "The Evolution of Supply-Chain-Management Models and Practice at Hewlett-Packard," Interfaces, INFORMS, vol. 25(5), pages 42-63, October.
    20. Fawcett, Stanley E. & Jones, Stephen L. & Fawcett, Amydee M., 2012. "Supply chain trust: The catalyst for collaborative innovation," Business Horizons, Elsevier, vol. 55(2), pages 163-178.
    21. Schoenherr, Tobias & Narayanan, Sriram & Narasimhan, Ram, 2015. "Trust formation in outsourcing relationships: A social exchange theoretic perspective," International Journal of Production Economics, Elsevier, vol. 169(C), pages 401-412.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yuyan Wang & Zhaoqing Yu & Liang Shen & Runjie Fan & Rongyun Tang, 2021. "Decisions and Coordination in E-Commerce Supply Chain under Logistics Outsourcing and Altruistic Preferences," Mathematics, MDPI, vol. 9(3), pages 1-23, January.
    2. Agata Austen, 2018. "In Search of Network Sustainability: A Multi-Level Perspective on the Paradox of Cooperation and Competition in Networks," Sustainability, MDPI, vol. 10(7), pages 1-21, July.
    3. Joanna Cygler & Włodzimierz Sroka & Marina Solesvik & Katarzyna Dębkowska, 2018. "Benefits and Drawbacks of Coopetition: The Roles of Scope and Durability in Coopetitive Relationships," Sustainability, MDPI, vol. 10(8), pages 1-24, August.
    4. Helena Bulińska-Stangrecka & Anna Bagieńska, 2019. "HR Practices for Supporting Interpersonal Trust and Its Consequences for Team Collaboration and Innovation," Sustainability, MDPI, vol. 11(16), pages 1-18, August.
    5. Judit Oláh & Yusmar Ardhi Hidayat & Beata Gavurova & Muhammad Asif Khan & József Popp, 2021. "Trust levels within categories of information and communication technology companies," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-21, June.
    6. Jeakang Heo & Yongjune Kim & Jinzhe Yan, 2020. "Sustainability of Live Video Streamer’s Strategies: Live Streaming Video Platform and Audience’s Social Capital in South Korea," Sustainability, MDPI, vol. 12(5), pages 1-13, March.
    7. Acquah, Innocent Senyo Kwasi & Naude, Micheline Juliana & Sendra-García, Javier, 2021. "Supply chain collaboration in the petroleum sector of an emerging economy: Comparing results from symmetrical and asymmetrical approaches," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    8. Chunling Li & Nosherwan Khaliq & Leslie Chinove & Usama Khaliq & Judit Oláh, 2023. "Consumers’ Perception of Risk Facets Associated With Fintech Use: Evidence From Pakistan," SAGE Open, , vol. 13(4), pages 21582440231, October.
    9. Kristina Ročkutė & Inga Minelgaitė & Ligita Zailskaitė-Jakštė & Robertas Damaševičius, 2018. "Brand Awareness in the Context of Mistrust: The Case Study of an Employment Agency," Sustainability, MDPI, vol. 10(3), pages 1-13, March.
    10. Chunling Li & Nosherwan Khaliq & Leslie Chinove & Usama Khaliq & József Popp & Judit Oláh, 2023. "Cryptocurrency Acceptance Model to Analyze Consumers’ Usage Intention: Evidence From Pakistan," SAGE Open, , vol. 13(1), pages 21582440231, March.
    11. Ismi Rajiani & Sebastian Kot, 2018. "The Prospective Consumers of the Indonesian Green Aviation Initiative for Sustainable Development in Air Transportation," Sustainability, MDPI, vol. 10(6), pages 1-16, May.
    12. Rabeea Sadaf & Judit Oláh & József Popp & Domicián Máté, 2018. "An Investigation of the Influence of the Worldwide Governance and Competitiveness on Accounting Fraud Cases: A Cross-Country Perspective," Sustainability, MDPI, vol. 10(3), pages 1-11, February.
    13. Miklós Pakurár & Hossam Haddad & János Nagy & József Popp & Judit Oláh, 2019. "The Impact of Supply Chain Integration and Internal Control on Financial Performance in the Jordanian Banking Sector," Sustainability, MDPI, vol. 11(5), pages 1-20, February.
    14. Martina Pieperhoff, 2018. "The Explanatory Power of Reciprocal Behavior for the Inter-Organizational Exchange Context," Sustainability, MDPI, vol. 10(6), pages 1-18, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Judit Oláh & Yusmar Ardhi Hidayat & Zdzisława Dacko-Pikiewicz & Morshadul Hasan & József Popp, 2021. "Inter-Organizational Trust on Financial Performance: Proposing Innovation as a Mediating Variable to Sustain in a Disruptive Era," Sustainability, MDPI, vol. 13(17), pages 1-18, September.
    2. Roman Fiala & Martin Prokop, 2013. "The relationship among reputation, inter-organizational trust and alliance performance," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 61(4), pages 899-908.
    3. Capaldo, Antonio & Giannoccaro, Ilaria, 2015. "How does trust affect performance in the supply chain? The moderating role of interdependence," International Journal of Production Economics, Elsevier, vol. 166(C), pages 36-49.
    4. Mishra, Deepa & Sharma, R.R.K. & Kumar, Sameer & Dubey, Rameshwar, 2016. "Bridging and buffering: Strategies for mitigating supply risk and improving supply chain performance," International Journal of Production Economics, Elsevier, vol. 180(C), pages 183-197.
    5. Ding, Zhujun & Au, Kevin & Chiang, Flora, 2015. "Social trust and angel investors' decisions: A multilevel analysis across nations," Journal of Business Venturing, Elsevier, vol. 30(2), pages 307-321.
    6. Bill McEvily & Akbar Zaheer & Darcy K. Fudge Kamal, 2017. "Mutual and Exclusive: Dyadic Sources of Trust in Interorganizational Exchange," Organization Science, INFORMS, vol. 28(1), pages 74-92, February.
    7. Bill McEvily & Vincenzo Perrone & Akbar Zaheer, 2003. "Trust as an Organizing Principle," Organization Science, INFORMS, vol. 14(1), pages 91-103, February.
    8. Aaquib Islam & Weizi Li & Kevin Johnson & Priam Lauchande, 2020. "How far has the integrated care come? Applying an asymmetric lens to inter-organisation trust amongst health and social care organisations," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 529-554, June.
    9. Li, Li, 2005. "The effects of trust and shared vision on inward knowledge transfer in subsidiaries' intra- and inter-organizational relationships," International Business Review, Elsevier, vol. 14(1), pages 77-95, February.
    10. Aaquib Islam & Weizi Li & Kevin Johnson & Priam Lauchande, 0. "How far has the integrated care come? Applying an asymmetric lens to inter-organisation trust amongst health and social care organisations," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-26.
    11. Delbufalo, Emanuela, 2015. "Subjective trust and perceived risk influences on exchange performance in supplier–manufacturer relationships," Scandinavian Journal of Management, Elsevier, vol. 31(1), pages 84-101.
    12. Judit OLÁH & József POPP & Gabriella ANTAL, 2018. "Time-Based Competition In The Supply-Chain: The Role Of The Logistics Service Providers," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 16, pages 37-46, May.
    13. Bidault, Francis & de la Torre, José R. & Zanakis, Stelios H. & Ring, Peter Smith, 2018. "Willingness to rely on trust in global business collaborations: Context vs. demography," Journal of World Business, Elsevier, vol. 53(3), pages 373-391.
    14. Wang, Longwei & Yeung, Jeff Hoi Yan & Zhang, Min, 2011. "The impact of trust and contract on innovation performance: The moderating role of environmental uncertainty," International Journal of Production Economics, Elsevier, vol. 134(1), pages 114-122, November.
    15. Rekha Krishnan & Inge Geyskens & Jan-Benedict E. M. Steenkamp, 2016. "The effectiveness of contractual and trust-based governance in strategic alliances under behavioral and environmental uncertainty," Strategic Management Journal, Wiley Blackwell, vol. 37(12), pages 2521-2542, December.
    16. Bönte, Werner, 2008. "Inter-firm trust in buyer-supplier relations: Are knowledge spillovers and geographical proximity relevant?," Journal of Economic Behavior & Organization, Elsevier, vol. 67(3-4), pages 855-870, September.
    17. Verhagen, T., 2008. "Investigating the impact of C2C electronic marketplace quality on trust," Serie Research Memoranda 0008, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    18. Xiaozhen Wang & Ki-Hyun Um & Shu Wang & Mingu Kang, 2023. "The mediating role of key supplier adaptability and involvement in the relationship between supplier relationship management and NPD project success," Operations Management Research, Springer, vol. 16(2), pages 794-807, June.
    19. Son, Byung-Gak & Lee, Chang-Hun & Ha, Byoung-Chun & Nam, Hyunjeong, 2019. "Investigating the fair treatment of suppliers and its trust fostering role and performance benefits," International Journal of Production Economics, Elsevier, vol. 216(C), pages 54-66.
    20. Laura Poppo & Kevin Zheng Zhou & Sungmin Ryu, 2008. "Alternative Origins to Interorganizational Trust: An Interdependence Perspective on the Shadow of the Past and the Shadow of the Future," Organization Science, INFORMS, vol. 19(1), pages 39-55, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:9:y:2017:i:12:p:2303-:d:122543. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.