Significance of Cross-cultural Trust in Streamlining Supply-chains for Global Enterprises

Abstract

In high-velocity global markets, streamlining enterprise supply-chains and increasing trust can reduce high transaction costs. In this article, we integrate previous research studies on the evolution of supply-chains for global enterprises and the role of trust in inter-organizational transactions. We propose that the streamlining of supply-chains with low intermediation is most likely to be associated with the selection of tristworthy agents, deployment of trust-building interactions, and the institutionalization of trust in the participating enterprise. Future implications for researchers and practitioners include the study of resistance to change for implementing streamlined supply-chains.

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