The effects of goodwill and competence trust on strategic information sharing in buyer–supplier relationships

Abstract

Purpose The purpose of this paper is to explore how the choice of buying managers to share or limit the sharing of strategic information with their suppliers relates to the presence or absence of goodwill and competence trust in the buyer–supplier relationship. Design/methodology/approach An interpretive single case study of a mid-sized retailer was used. In total, 17 semi-structured interviews examining information sharing events were conducted with buying managers, along with the analysis of company documents. Findings Goodwill and competence trust have a positive effect on strategic information sharing, yet this study reveals several tactics used by buying managers in the presence of competence trust only. With a lack of established trust, or earlier trust breaches, little to no information sharing occurs. Research limitations/implications This study featured cross-sectional data of a single case from the buyer’s perspective. This limits its generalizability, yet provides opportunities to test the findings through longitudinal studies, potentially gathering data from both buyers and suppliers. Practical implications Relating which types of information being shared for different forms of trust guides managers’ expectations on which type of trust they wish to build for each of their buyer–supplier relationships. Originality/value This study examines the trust and information sharing relationship in more detail, linking different types of trust to categories of strategic information. It also distinguishes between the different concepts of encouraging information sharing and deliberately limiting strategic information sharing.

Effects of Partnership Quality and Information Sharing on Express Delivery Service Performance in the E-commerce Industry

“…For studying the mechanism of information sharing, a literature review in information sharing quality and willingness to share information was conducted. Because information-sharing behaviors and business partnership quality are closely related [16], therefore, research in partnership quality was also reviewed. Relevant studies were sought for the definition and measurement of the logistics service performance.…”

“…Hsu et al [15] identified that the information-sharing capability between buyers and suppliers increases if the relationship between the two is good. Newell et al [16] also noted that a good partnership boosts information exchange between buyers and suppliers, which can further promote interaction and information sharing between the two parties. For the E-commerce industry, this implies that the relationship between E-commerce enterprises and EDSPs may influence E-commerce enterprises' willingness to share information with their EDSPs.…”

Friends or strangers? Attempts at reactivating buyer–supplier relationships

“…Past interactions between the parties have been shown to play a role in negotiation and in relationship development. MacDuffie (2011) argues that both trust and distrust have an impact on the relationship dynamics, whereas Newell et al (2019) have studied how the trust that has been built up toward the counterpart in earlier interactions affect the amount of information that is shared between the parties at present.…”

The role of brand representatives in predicting trust in early buyer–supplier relationships

“…Trust is important to buyer-supplier relationships because it reduces the ambiguity of transactions (Zaheer et al, 1998b). When trust is present, it provides "goodwill" or a belief in each partner's behavior, acceptance of uncertainty and generally greater confidence in the success of the relationship (Wagner et al, 2011;Newell et al, 2019). Trust is an intangible asset that, when present, will benefit a supplier through an increase in business with a customer, fewer costs to transactions, faster approval processes and better information (Ireland and Webb, 2007).…”