The effects of trust and coercive power on supplier integration

Jeff Hoi Yan Yeung, Willem Selen, Min Zhang, Baofeng Huo

Research output: Contribution to journalArticlepeer-review

206 Citations (Scopus)

Abstract

Supply chain integration nowadays is considered an important approach to building and sustaining competitive advantages. Many previous empirical researches have investigated trust and power between suppliers and customers, yet, the effects of trust and coercive power on supply chain integration are still largely unknown. This study investigates trust, coercive power and their interaction and their impact on internal and supplier integration, based on data collected in Chinese supply chains. The results reveal that both trust and coercive power improve internal and supplier integration, but when trust is low, coercive power reduces internal integration. Contradictory to conventional wisdom that coercive power hinders cooperation, this study found that coercive power improves supplier integration in Chinese supply chains, with or without the presence of trust. This study provides significant insights for Chinese inter-organizational trust-power relationship management and supply chain integration practices.

Original languageEnglish
Pages (from-to)66-78
Number of pages13
JournalInternational Journal of Production Economics
Volume120
Issue number1
DOIs
Publication statusPublished - Jul 2009
Externally publishedYes

Keywords

  • China
  • Coercive power
  • Supplier integration
  • Trust

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

Fingerprint

Dive into the research topics of 'The effects of trust and coercive power on supplier integration'. Together they form a unique fingerprint.

Cite this