The effect of supplier's market orientation on manufacturer's trust |
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| Authors: | Yushan Zhao [Author Vitae] S. Tamer Cavusgil [Author Vitae] |
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| Affiliation: | a Department of Marketing, University of Wisconsin, Whitewater, C4029 Carlson Hall, Whitewater, WI 53190, United States
b The John W. Byington Endowed Chair in Global Marketing, Michigan State University, The Eli Broad Graduate School of Management, Department of Marketing and Supply Chain Management, N370 North Business Complex East Lansing, MI 48823-1122, United States |
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| Abstract: | Recent studies show that manufacturing firms can select suppliers according to suppliers' market-oriented behaviors. Based on market orientation literature and research on inter-firm relationships, a model is developed to examine the impact of supplier's market orientation on manufacturer's trust. The framework is tested using Structural Equation Modeling and the data are from dyadic manufacturer and supplier relationships in U.S. firms. The results show that supplier's market orientation is significantly related to manufacturer's trust, which affects the manufacturer's long-term orientation toward the supplier. Discussions and implications for managers are presented at the end of the article. |
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| Keywords: | Supplier relationships Market orientation Trust Supplier selection |
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