Linking inter-organizational trust with logistics information integration and partner cooperation under environmental uncertainty

Many organizations have undertaken information integration to coordinate their logistics activities. Such logistics information integration serves to enhance the transactional and relational mechanisms which are instrumental for buyer and supplier firms in the logistics chain to gain performance. Ba...

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Bibliographic Details
Published in:International journal of production economics 2012-10, Vol.139 (2), p.642-653
Main Authors: Wei, Hsiao-Lan, Wong, Christina W.Y., Lai, Kee-hung
Format: Article
Language:English
Subjects:
Chains
Cooperation
Economics
Environmental uncertainty
Information management
Inter-organizational trust
Logistics
Logistics information integration
Marketing
Markets
Operations research
Partner cooperation
Social exchange theory
Studies
Suppliers
Transaction costs
Trust
Uncertainty
Vendor supplier relations
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Summary:Many organizations have undertaken information integration to coordinate their logistics activities. Such logistics information integration serves to enhance the transactional and relational mechanisms which are instrumental for buyer and supplier firms in the logistics chain to gain performance. Based on the transaction cost economics and social exchange theory, we propose and empirically test the link between logistics information integration and inter-organizational trust and their effects on partner cooperation and buyer and supplier performance, and if so, whether these effects are contingent on environmental uncertainty. Our test results with survey data collected from 154 manufacturing firms indicate the value of logistics information integration and inter-organizational trust on buyer and supplier performance particularly when they encounter unforeseen market changes. Regardless of the environmental uncertainty relating to the difficulty in predicting product demand, rate of cannibalization, and technological advancement, logistics information integration and inter-organizational trust are shown to provide transactional and relational mechanisms helpful for improving performance in the logistics chain.
ISSN:0925-5273
1873-7579
DOI:10.1016/j.ijpe.2012.05.036