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The role of mutual trust in supply chain management: deriving from attribution theory and transaction cost theory

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  • Sunhee Youn
  • Woosang Hwang
  • Ma Ga Yang

Abstract

Information sharing practises among the supply chain partners enhance supply chain flexibility. The exchange of information sharing, however, may not ensure the expected quality outcomes of information. To test the mediating role of mutual trust between information sharing and information quality, this study uniquely examines four contexts of information sharing (receiving information from customers; receiving information from suppliers; providing information to customers; and providing information to suppliers). With two theoretical lenses, attribution theory and transaction cost theory, this study empirically investigates the interrelationships among information sharing, information quality, mutual trust, and supply chain flexibility with data from 74 Korean steel firms. The results suggest that: 1) attribution error (i.e., self-service bias) is likely to happen when it comes to providing information context; 2) mutual trust plays a crucial role in transferring information sharing into information quality. Implications as well as future research opportunities are provided.

Suggested Citation

  • Sunhee Youn & Woosang Hwang & Ma Ga Yang, 2012. "The role of mutual trust in supply chain management: deriving from attribution theory and transaction cost theory," International Journal of Business Excellence, Inderscience Enterprises Ltd, vol. 5(5), pages 575-597.
    • Handle: RePEc:ids:ijbexc:v:5:y:2012:i:5:p:575-597
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    Citations

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    Cited by:

    1. Kiyoung Jeong & Jae-Dong Hong, 2019. "The impact of information sharing on bullwhip effect reduction in a supply chain," Journal of Intelligent Manufacturing, Springer, vol. 30(4), pages 1739-1751, April.
    2. Youn, Sun Hee & Yang, Ma Ga (Mark) & Kim, Jin Hwan & Hong, Paul, 2014. "Supply chain information capabilities and performance outcomes: An empirical study of Korean steel suppliers," International Journal of Information Management, Elsevier, vol. 34(3), pages 369-380.
    3. Alessio Ishizaka & Sharfuddin Ahmed Khan & Siamak Kheybari & Syed Imran Zaman, 2023. "Supplier selection in closed loop pharma supply chain: a novel BWM–GAIA framework," Annals of Operations Research, Springer, vol. 324(1), pages 13-36, May.

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