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

Hsiao Lan Wei, Wing Yan Wong, Kee Hung Lai

Research output: Journal article publicationJournal articleAcademic researchpeer-review

54 Citations (Scopus)

Abstract

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.
Original languageEnglish
Pages (from-to)642-653
Number of pages12
JournalInternational Journal of Production Economics
Volume139
Issue number2
DOIs
Publication statusPublished - 1 Oct 2012

Keywords

  • Environmental uncertainty
  • Inter-organizational trust
  • Logistics information integration
  • Partner cooperation

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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