Untangling the trust-control nexus in international buyer-supplier exchange relationships: An investigation of the changing world regarding relationship length

    Research output: Contribution to journalArticlepeer-review

    11 Citations (Scopus)
    89 Downloads (Pure)

    Abstract

    Control and trust are the primary governance mechanisms buying organizations rely upon to organize and maintain their collaborative exchange relationships with foreign suppliers. But the question of how control and trust interrelate and should be pursued seems entangled and practical advice remains largely elusive. Based on empirical data on 212 recently- and long-established buyer-supplier exchange relationships in the textile industry, we test the relationship between three practices of interorganizational control (output, process, and normative controls), two dimensions of interorganizational trust (competence and goodwill trust), and relationship performance. Using structural equation modelling, we demonstrate the value of controls for building and validating trust to depend as much on the specific control practice deployed and dimension of trust observed, as on the temporal stage of the exchange relationship. Moreover, we reveal distinct performance effects of the different control practices and dimensions of trust. Herewith, this study allows for a comprehensive understanding of the trust-control nexus in collaborative exchange relationships between buyers and their foreign suppliers. Addressing managers, we reveal how normative controls can be used to build trust and promote performance at the start of the relationship, whereas output controls need time to reach their full potential. Process controls, in turn, are found to have adverse effects.
    Original languageEnglish
    Pages (from-to)523-537
    Number of pages15
    JournalEuropean Management Journal
    Volume35
    Issue number4
    Early online date28 Sep 2016
    DOIs
    Publication statusPublished - Aug 2017

    Bibliographical note

    This paper is in press. The paper will be added to Curve on 28 September 2018 after a 2 year embargo period.

    Keywords

    • Control
    • Trust
    • Performance
    • Relationship length
    • Textile value chain

    Fingerprint

    Dive into the research topics of 'Untangling the trust-control nexus in international buyer-supplier exchange relationships: An investigation of the changing world regarding relationship length'. Together they form a unique fingerprint.

    Cite this