The Negative Effects of Supplier's Sub-optimal Trust on Performance:Information Exchange as a Mediator

Abstract

Abstract:

In marketing channel researches, more attention is paid to the positive effect of inter-firm trust on performance. However, few studies explore the potential negative effects of sub-optimal trust on channel member's action and channel relationship performance. Based on transaction economic theory and relational exchange theory, this study develops a conceptual model covering sub-optimal trust (excessive trust and insufficient trust), information exchange between channel members and supplier's economic satisfaction. Using regression analysis approach based on 238 sample data from household machine manufactures in China, we examine our hypothesis. The empirical results reveal that supplier's excessive trust and insufficient trust both have negative effect on the information exchange between channel members and supplier's economic satisfaction; in addition information exchange between members is a mediator. Our research indicates the importance of optimal trust in channel relationship, and reveals the internal mechanism and path of relationship between sub-optimal trust with channel performance, which also has important guiding significance for inter-firm trust building and channel relationship management.

Key words: excessive trust, insufficient trust, information exchange, economic satisfaction, mediator

Yang Wei, Zhang Yu, Liu Yi, Li Yao, Zhou Yin. The Negative Effects of Supplier's Sub-optimal Trust on Performance:Information Exchange as a Mediator[J]. , 2017, 29(9): 143-154.

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