"When Can You Trust “Trust”?Calculative Trust, Relational Trust, and Supplier Performance"

Abstract

Despite the many studies showing the positive association of trust and buyer-supplier exchange outcomes, extant research has not empirically assessed two distinct bases for trust: calculative trust, in which incentives align goals, and relational trust, in which a shared identity aligns goals. Our findings from 211 buyer–supplier relationships demonstrate that both relational trust and calculative trust simultaneously and positively influence supplier performance, yet calculative trust has a stronger relationship with performance than relational trust does. Our empirical results further show important differences exist in when to trust “trust”. When the buyer invests in supplier-specific assets, only relational trust is associated with higher supplier performance. Yet, when behavioral uncertainty is high, calculative trust is associated with higher levels of supplier performance, but relational trust is not. Finally, when market uncertainty exists, both relational trust and calculative trust are positively associated with supplier performance.

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