Total Trust and Trust Asymmetry: Does Trust Need to Be Equally Distributed in Interfirm Relationships?

Abstract

Interfirm supply chain relationships can be an important driver of firm performance and sustainable competitive advantage. Successful supply chain relationships have been shown to reduce costs, increase service, and improve financial performance. However, in order to truly leverage the power of collaborative supply chain initiatives, relationship partners must trust each other. The purpose of this research is to take a deeper look at the concept of trust and to more precisely specify how trust impacts interfirm relationships. Therefore, this conceptual literature review uses applicable theory to introduce the interdependent concepts of total trust and trust asymmetry. This research addresses a gap in the relationship literature by exploring the potential effects of total trust and trust asymmetry on collaborative behaviors in interfirm supply chain relationships. The strategic performance implications of total trust and trust asymmetry may offer critical insight into the reasons why interfirm supply chain relationships succeed or fail.

KEYWORDS:

• asymmetry
• interfirm relationships
• supply chain management
• trust