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Matter over mind: When specific asset investment affects calculative trust in supply chain partnership |
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| Authors: | Taewon Suh [Author Vitae] Ik-Whan G. Kwon [Author Vitae] |
| Affiliation: | a Department of Marketing, McCoy College of Business Administration, Texas State University-San Marcos 601 University Drive, San Marcos, Texas 78666-4616, United States b The Consortium for Supply Chain Management Studies, John Cook School of Business, Saint Louis University, 3674 Lindell Boulevard, St. Louis, MO 63108, United States c KDI School of Public Policy and Management, Seoul, Korea |
| Abstract: | This study, using the concept of trust defined as calculative, risk-related, and relationship-based, examines the relationships between bilateral specific asset investments and after-investing trust. The findings indicate that a firm's trust in their supply chain partner is highly associated with both sides' specific asset investments. It also signifies that the replaceability of a respondent firm moderates the positive relationship between the partner's specific asset investment and trust. Our data has proven that the calculative-based trust theory has better explaining power with the transaction cost analysis (TCA) variables than the knowledge-based trust theory. |
| Keywords: | Trust Asset specificity Transaction cost Supply chain |
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