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

Author

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  • 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
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    References listed on IDEAS

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