IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v166y2015icp36-49.html
   My bibliography  Save this article

How does trust affect performance in the supply chain? The moderating role of interdependence

Author

Listed:
  • Capaldo, Antonio
  • Giannoccaro, Ilaria

Abstract

This paper focuses on the positive relationship between trust and performance in the supply chain and investigates whether and how the interdependence structure of the supply chain moderates this relationship. Interdependence occurs in supply chains because supply chain partners depend upon one another for product and process accomplishments and for the tangible and intangible resources owned by their partners. Framing the supply chain as a complex adaptive system, we argue that, in supply chain contexts, both the degree of interdependence (i.e., the average number of interactions among the supply chain firms) and the overall interdependence pattern (which maps with who each supply chain firm interacts) moderate the relationship between trust and supply chain performance. The proposed conceptual framework is operationalized through the NK fitness landscape model and tested using simulation and Tobit regression analyses. Results confirm that the specific interdependence pattern that characterizes the supply chain has a significant moderating effect on the relationship between trust and supply chain performance, while the moderating effect exerted by the degree of interdependence is not statistically significant.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:proeco:v:166:y:2015:i:c:p:36-49
    DOI: 10.1016/j.ijpe.2015.04.008
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527315001231
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2015.04.008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Anonymous, 1991. "The Automobile Industry," Business History Review, Cambridge University Press, vol. 65(4), pages 1-1, January.
    2. Jan W. Rivkin, 2001. "Reproducing Knowledge: Replication Without Imitation at Moderate Complexity," Organization Science, INFORMS, vol. 12(3), pages 274-293, June.
    3. Jan W. Rivkin & Nicolaj Siggelkow, 2003. "Balancing Search and Stability: Interdependencies Among Elements of Organizational Design," Management Science, INFORMS, vol. 49(3), pages 290-311, March.
    4. Laaksonen, Toni & Jarimo, Toni & Kulmala, Harri I., 2009. "Cooperative strategies in customer-supplier relationships: The role of interfirm trust," International Journal of Production Economics, Elsevier, vol. 120(1), pages 79-87, July.
    5. Jay B. Barney & Mark H. Hansen, 1994. "Trustworthiness as a Source of Competitive Advantage," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 175-190, December.
    6. Antonio Capaldo, 2007. "Network structure and innovation: The leveraging of a dual network as a distinctive relational capability," Strategic Management Journal, Wiley Blackwell, vol. 28(6), pages 585-608, June.
    7. Mia Gray & Elyse Golob & Ann Markusen, 1996. "Big Firms, Long Arms, Wide Shoulders: The 'Hub-and-Spoke' Industrial District in the Seattle Region," Regional Studies, Taylor & Francis Journals, vol. 30(7), pages 651-666.
    8. Lazerson, Mark H & Lorenzoni, Gianni, 1999. "The Firms That Feed Industrial Districts: A Return to the Italian," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 8(2), pages 235-266, June.
    9. Ajai S. Gaur & Debmalya Mukherjee & Sanjaya S. Gaur & Florian Schmid, 2011. "Environmental and Firm Level Influences on Inter‐Organizational Trust and SME Performance," Journal of Management Studies, Wiley Blackwell, vol. 48(8), pages 1752-1781, December.
    10. Nicolaj Siggelkow, 2011. "Firms as Systems of Interdependent Choices," Journal of Management Studies, Wiley Blackwell, vol. 48, pages 1126-1140, July.
    11. Nooteboom, B. & Berger, H. & Noorderhaven, N.G., 1997. "Effects of trust and governance on relational risk," Other publications TiSEM 8e83932e-064c-40e8-afe7-4, Tilburg University, School of Economics and Management.
    12. Narasimhan, Ram & Nair, Anand, 2005. "The antecedent role of quality, information sharing and supply chain proximity on strategic alliance formation and performance," International Journal of Production Economics, Elsevier, vol. 96(3), pages 301-313, June.
    13. 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.
    14. Giannoccaro, Ilaria, 2011. "Assessing the influence of the organization in the supply chain management using NK simulation," International Journal of Production Economics, Elsevier, vol. 131(1), pages 263-272, May.
    15. Constantine S Katsikeas & Dionysis Skarmeas & Daniel C Bello, 2009. "Developing successful trust-based international exchange relationships," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(1), pages 132-155, January.
    16. Ernst, Ricardo & Kamrad, Bardia, 2000. "Evaluation of supply chain structures through modularization and postponement," European Journal of Operational Research, Elsevier, vol. 124(3), pages 495-510, August.
    17. 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.
    18. Jan W. Rivkin & Nicolaj Siggelkow, 2007. "Patterned Interactions in Complex Systems: Implications for Exploration," Management Science, INFORMS, vol. 53(7), pages 1068-1085, July.
    19. Sako, Mari & Helper, Susan, 1998. "Determinants of trust in supplier relations: Evidence from the automotive industry in Japan and the United States," Journal of Economic Behavior & Organization, Elsevier, vol. 34(3), pages 387-417, March.
    20. Bill McEvily & Vincenzo Perrone & Akbar Zaheer, 2003. "Trust as an Organizing Principle," Organization Science, INFORMS, vol. 14(1), pages 91-103, February.
    21. Jan W. Rivkin, 2000. "Imitation of Complex Strategies," Management Science, INFORMS, vol. 46(6), pages 824-844, June.
    22. Kurt T. Dirks & Donald L. Ferrin, 2001. "The Role of Trust in Organizational Settings," Organization Science, INFORMS, vol. 12(4), pages 450-467, August.
    23. Augustine A. Lado & Rajiv R. Dant & Amanuel G. Tekleab, 2008. "Trust‐opportunism paradox, relationalism, and performance in interfirm relationships: evidence from the retail industry," Strategic Management Journal, Wiley Blackwell, vol. 29(4), pages 401-423, April.
    24. Daniel A. Levinthal, 1997. "Adaptation on Rugged Landscapes," Management Science, INFORMS, vol. 43(7), pages 934-950, July.
    25. Akbar Zaheer & N. Venkatraman, 1995. "Relational governance as an interorganizational strategy: An empirical test of the role of trust in economic exchange," Strategic Management Journal, Wiley Blackwell, vol. 16(5), pages 373-392.
    26. Matthew J. Robson & Constantine S. Katsikeas & Daniel C. Bello, 2008. "Drivers and Performance Outcomes of Trust in International Strategic Alliances: The Role of Organizational Complexity," Organization Science, INFORMS, vol. 19(4), pages 647-665, August.
    27. Helper, Susan, 1991. "Strategy and Irreversibility in Supplier Relations: The Case of the U.S. Automobile Industry," Business History Review, Cambridge University Press, vol. 65(4), pages 781-824, January.
    28. Jakki Mohr & Robert Spekman, 1994. "Characteristics of partnership success: Partnership attributes, communication behavior, and conflict resolution techniques," Strategic Management Journal, Wiley Blackwell, vol. 15(2), pages 135-152, February.
    29. 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.
    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. 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.
    2. Giannoccaro, Ilaria & Carbone, Giuseppe, 2017. "An Ising-based dynamic model to study the effect of social interactions on firm absorptive capacity," International Journal of Production Economics, Elsevier, vol. 194(C), pages 214-227.
    3. Jianqi Qiao & Suicheng Li & Antonio Capaldo, 2022. "Green supply chain management, supplier environmental commitment, and the roles of supplier perceived relationship attractiveness and justice. A moderated moderation analysis," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3523-3541, November.
    4. Massari, Giovanni F. & Giannoccaro, Ilaria & Carbone, Giuseppe, 2019. "Are distrust relationships beneficial for group performance? The influence of the scope of distrust on the emergence of collective intelligence," International Journal of Production Economics, Elsevier, vol. 208(C), pages 343-355.
    5. Rameshwar Dubey & Nezih Altay & Constantin Blome, 2019. "Swift trust and commitment: The missing links for humanitarian supply chain coordination?," Annals of Operations Research, Springer, vol. 283(1), pages 159-177, December.
    6. Mihai TALMACIU & Krisztina Melinda DOBAY, 2018. "The Influence Of National Cultural Values On The Association Structure Development," Agricultural Economics and Rural Development, Institute of Agricultural Economics, vol. 15(2), pages 185-198.
    7. Hou, Yunzhang & Wang, Xiaoling & Wu, Yenchun Jim & He, Peixu, 2018. "How does the trust affect the topology of supply chain network and its resilience? An agent-based approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 116(C), pages 229-241.
    8. Ilaria Giannoccaro & Giovanni F. Massari & Giuseppe Carbone, 2018. "Team Resilience in Complex and Turbulent Environments: The Effect of Size and Density of Social Interactions," Complexity, Hindawi, vol. 2018, pages 1-11, July.
    9. Massari, Giovanni Francesco & Giannoccaro, Ilaria, 2021. "Investigating the effect of horizontal coopetition on supply chain resilience in complex and turbulent environments," International Journal of Production Economics, Elsevier, vol. 237(C).
    10. Luca Fraccascia & Ilaria Giannoccaro & Vito Albino, 2017. "Efficacy of Landfill Tax and Subsidy Policies for the Emergence of Industrial Symbiosis Networks: An Agent-Based Simulation Study," Sustainability, MDPI, vol. 9(4), pages 1-18, March.
    11. Federica Angeli & Shila Teresa Ishwardat & Anand Kumar Jaiswal & Antonio Capaldo, 2018. "Socio-Cultural Sustainability of Private Healthcare Providers in an Indian Slum Setting: A Bottom-of-the-Pyramid Perspective," Sustainability, MDPI, vol. 10(12), pages 1-27, December.
    12. Carmen Pedroza-Gutiérrez & Juan M. Hernández, 2020. "Social Networks and Supply Chain Management in Fish Trade," SAGE Open, , vol. 10(2), pages 21582440209, June.
    13. Setene, Letlama & Jordaan, Daniel du P.S., 2021. "The trade-off between chain performance and fragility considering coordination strategies of agri-food chains: a South African egg chain's case study," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(3), March.
    14. Fang Jia & Zhilin Yang, 2021. "Perceptual difference of dependence and trust in marketing channel: reconsideration of dependence measurement," Asian Business & Management, Palgrave Macmillan, vol. 20(1), pages 78-104, February.
    15. Hofer, Christian & Barker, Jordan & Eroglu, Cuneyt, 2021. "Interorganizational imitation in supply chain relationships: The case of inventory leanness," International Journal of Production Economics, Elsevier, vol. 236(C).
    16. Ojha, Divesh & Shockley, Jeff & Acharya, Chandan, 2016. "Supply chain organizational infrastructure for promoting entrepreneurial emphasis and innovativeness: The role of trust and learning," International Journal of Production Economics, Elsevier, vol. 179(C), pages 212-227.
    17. R. Krishankumar & K. S. Ravichandran, 2018. "Realizing the effects of trust and personality in cross functional teams using ANFIS classification framework," Computational and Mathematical Organization Theory, Springer, vol. 24(2), pages 243-276, June.
    18. Huo, Baofeng & Ye, Yuxiao & Zhao, Xiande, 2015. "The impacts of trust and contracts on opportunism in the 3PL industry: The moderating role of demand uncertainty," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 160-170.
    19. Muhammad Khan & Hee Yong Lee & Jung Han Bae, 2019. "The Role of Transparency in Humanitarian Logistics," Sustainability, MDPI, vol. 11(7), pages 1-27, April.
    20. Joanita Kataike & Xavier Gellynck, 2018. "22 Years of Governance Structures and Performance: What Has Been Achieved in Agrifood Chains and Beyond? A Review," Agriculture, MDPI, vol. 8(4), pages 1-32, March.

    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. Vijayasarathy, Leo R., 2010. "Supply integration: An investigation of its multi-dimensionality and relational antecedents," International Journal of Production Economics, Elsevier, vol. 124(2), pages 489-505, April.
    2. Ranjay Gulati & Maxim Sytch, 2008. "Does familiarity breed trust? Revisiting the antecedents of trust," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(2-3), pages 165-190.
    3. Giannoccaro, Ilaria, 2015. "Adaptive supply chains in industrial districts: A complexity science approach focused on learning," International Journal of Production Economics, Elsevier, vol. 170(PB), pages 576-589.
    4. Lui, Steven S. & Ngo, Hang-yue & Hon, Alice H.Y., 2006. "Coercive strategy in interfirm cooperation: Mediating roles of interpersonal and interorganizational trust," Journal of Business Research, Elsevier, vol. 59(4), pages 466-474, April.
    5. Oliver Schilke & Karen S. Cook, 2015. "Sources of alliance partner trustworthiness: Integrating calculative and relational perspectives," Strategic Management Journal, Wiley Blackwell, vol. 36(2), pages 276-297, February.
    6. Costa e Silva, Susana & Bradley, Frank & Sousa, Carlos M.P., 2012. "Empirical test of the trust–performance link in an international alliances context," International Business Review, Elsevier, vol. 21(2), pages 293-306.
    7. Fang, F., 2019. "When performance shortfall arises, contract or trust? A multi-method study of the impact of contractual and relational governances on performance in public – private partnerships," Other publications TiSEM 473840ee-6945-4a93-9326-5, Tilburg University, School of Economics and Management.
    8. Linda H. Y. Hsieh & Suzana B. Rodrigues, 2014. "Revisiting the Trustworthiness–Performance–Governance Nexus in International Joint Ventures," Management International Review, Springer, vol. 54(5), pages 675-705, October.
    9. Efrat, Kalanit & Øyna, Stine, 2021. "An interaction orientation approach to SME-Intermediaries relationships," European Management Journal, Elsevier, vol. 39(4), pages 508-520.
    10. Giannoccaro, Ilaria & Galesic, Mirta & Massari, Giovanni Francesco & Barkoczi, Daniel & Carbone, Giuseppe, 2020. "Search behavior of individuals working in teams: A behavioral study on complex landscapes," Journal of Business Research, Elsevier, vol. 118(C), pages 507-516.
    11. Mo Chen & Aseem Kaul & Brian Wu, 2019. "Adaptation across multiple landscapes: Relatedness, complexity, and the long run effects of coordination in diversified firms," Strategic Management Journal, Wiley Blackwell, vol. 40(11), pages 1791-1821, November.
    12. Carole Couper & A. Rebecca Reuber & Shameen Prashantham, 2020. "Lost that lovin’ feeling: The erosion of trust between small, high-distance partners," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(3), pages 326-352, April.
    13. Celo, Sokol & Nebus, James & Kim Wang, I., 2015. "MNC structure, complexity, and performance: Insights from NK methodology," Journal of International Management, Elsevier, vol. 21(3), pages 182-199.
    14. Celo, Sokol & Nebus, James & Wang, I. Kim, 2018. "The Role of Internal and External Complexity in Global Factory Performance: An NKC Application," Journal of International Management, Elsevier, vol. 24(1), pages 65-83.
    15. Laura Poppo & Kevin Zheng Zhou & Todd R. Zenger, 2008. "Examining the Conditional Limits of Relational Governance: Specialized Assets, Performance Ambiguity, and Long‐Standing Ties," Journal of Management Studies, Wiley Blackwell, vol. 45(7), pages 1195-1216, November.
    16. Muhammad Khan & Hee Yong Lee & Jung Han Bae, 2019. "The Role of Transparency in Humanitarian Logistics," Sustainability, MDPI, vol. 11(7), pages 1-27, April.
    17. 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.
    18. Roland Helm & Martin Kloyer & Christin Aust, 2018. "R&D Collaboration Between Firms: Hard And Soft Antecedents Of Supplier Knowledge Sharing," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(01), pages 1-42, December.
    19. Alexander T Mohr & Jonas Puck, 2013. "Revisiting the Trust-performance Link in Strategic Alliances," Management International Review, Springer, vol. 53(2), pages 269-289, April.
    20. 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.

    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:eee:proeco:v:166:y:2015:i:c:p:36-49. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    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.