Trust And Supplier-Buyer Relationship: Empirical Analysis

According to the journal “Trust and Supplier-Buyer Relationship: an Empirical Analysis”, Trust is referred as a key factor for the development of partnerships among the different agents of a supply chain. The journal is stated it has been provided evidence suggesting that supplier involvement may positively contribute to improve buyer ability to develop new products (Brown & Eisenhardt, 1995; Montoya-Weiss & Calantone, 1994; Ragatz, Handfield, & Petersen, 2002; Song & Benedetto, 2008). These contributions by suppliers to buyer ability to develop new products are somewhat related to trustworthy relationships between buyers and suppliers. Dyer’s works (Dyer & Chu, 2000, 2003) and Zaheer, McEvily and Perrone (1998) have contributed to provide

One of research done by University of Moncton, Canada has advocated that customer trust will affect the customer royalty even to the product demands. On the journal “The Mediating Role of Customer Trust on Customer Loyalty”, it stated that there are various relationships between the construct of social identity, customer trust, and customer loyalty. This is because customer trust is bring a huge impact to the corporate identity, image and also the reputation of the company. Once the customer is losing their trust to the company, they are not willing to buy the company product or service anymore and this might affect the customer confidence to the same types product. For example, the incident of polluting diesel cars by Volkswagen Company are causing the company damaged the company image, reputation and causing the company to losing the customer trust and product demand. Because of that, the company is spending quite a long period and money to solve the diesel emissions matter and to implementing a solution for affected vehicles for earn back the trust of the customers, dealers, and the public. This show how the customer trust is important to affecting the company

According to the article “Trusted to Lead: Trustworthiness and its Impact on Leadership”, Trust is intangible and it is an intellectual asset, a skill, and an influencing power for leaders. People having leadership by the trust are emphasized trustful behavior towards their employees. The article stated that employees who trust their leader work effectively and have a high level of commitment compare to the other. People who trust each other are willing to share ideas and knowledge, tacit knowledge to each other. Besides that, trust level between people will grow when cooperation is reciprocated. On the other size, in psychologically trust declines most often when positive expectations are disconfirmed (Lewicki et al., 2006). For this situation respect and appreciation are needed to stimulate the development of trust while poor leadership is actual underestimates employees personal competencies and this will eventually result in declining work and company performance. So in short it explains that there a positive effect for the employee trust level to their performance.

In the book of Smart Trust by Stephen and Covey (2012), it highlighted that share enlightening principles and anecdotes of people and organizations that are not only achieving unprecedented prosperity from high-trust relationships and cultures but also attaining elevated levels of