Trust, Information Integration, and Coordination Costs: An Integrative Model

DOI 10.14707/ajbr.170032

Shaohan Cai
Sprott School of Business, Carleton University, Canada.
Zhilin Yang
Department of Marketing, City University of Hong Kong, Hong Kong.

Abstract

Our research develops an integrative model of trust, information integration and performance implications. A study of 398 Chinese firms shows that goodwill trust affects information sharing, while competence trust affects both information sharing and joint planning. Information sharing reduces coordination costs and increases supplier performance; joint planning increases both coordination costs and supplier performance. Finally, coordination costs reduce supplier performance.

Keywords: Trust, Information Integration, Coordination Costs

 

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