Distinguishing supplier reputation from trust in buyer-supplier relationships

We argue that a firm's reputation (i.e., central, enduring, and distinctive corporate associations held by individuals outside of an organization), although under-researched relative to trust, is more important than trust in impacting buyer-supplier relationships. Our conceptualization draws on theories and extant research related to transaction cost economics, information economics, and interfirm trust. The constructs of trust and reputation are distinguished and their relative impacts on relationship commitment and willingness to invest in the future of the relationship are examined. Suggestive empirical evidence is provided from a survey of industrial buyers, and implications and specific directions for future research are discussed.