Factors Affecting the Level of Trust and Commitment in Supply Chain Relationships

SUMMARY Trust is a critical factor fostering commitment among supply chain partners. The presence of trust improves measurably the chance of successful supply chain performance. A lack of trust among supply chain partners often results in inefficient and ineffective performance as the transaction costs (verification, inspections and certifications of their trading partners) mount. Although the literature often mentions a relationship between trust and commitment, there is a lack of empirical testing of such relationship in the supply context. This study attempts to fill the gap between the theoretical argument and empirical testing. Results using a comprehensive survey of supply chain practitioners indicate…