Management Review

›› 2015, Vol. 27 ›› Issue (11): 192-206.

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Study on Origins of Buyer's Trust and Impact of Trust on Contract Flexibility in Supply Chain

Ma Hujie1,2, Shi Kuiran3, Fan Jin2   

  1. 1. Changzhou State Administration of Taxation Bureau, Changzhou 213022;
    2. Research Center for Jiangsu Applied Economics, Jiangsu Administration Institute, Nanjing 210009;
    3. College of Economics and Management, Nanjing University of Technology, Nanjing 210009
  • Received:2013-11-07 Online:2015-11-30 Published:2015-12-07

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Abstract:

Based on buyer's trust, the origins of organization trust is examined and the impact of different dimensions of trust in two-stage supply chain on different dimensions of contract flexibility and the moderating effect of buyer's special investment during this process is explored. Based on the questionnaire analysis of 145 manufacturing enterprises(buyers) in Jiangsu and Shandong province, the empirical study based on the PLS-SEM method shows that institution environment has significant positive impact on contractual trust, organizational communication has significant positive impact on goodwill trust, while reputation has significant positive impact on contractual trust, competence trust and goodwill trust; organization contractual trust has significant positive impact on the flexibility in modification, goodwill trust has positive significant impact on the flexibility in modification and negative impact on flexibility in exit, while the moderating effect of special investment is only significant in the flexibility in modification for competence trust. This paper is of guiding significance for the nurture, development and sustainment of trust and for further understanding between buyer's trust and contract flexibility.

Key words: buyer's trust, contract flexibility, origin, PLS