What breaks trust in customer supplier relationship?

Mohammed Laeequddin · G.D. Sardana

44 citations0/0 files storedManagement Decision

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Customer Service Quality and Loyalty Quality and Supply Management Outsourcing and Supply Chain Management

Abstract

Purpose The purpose of this paper is to understand what breaks trust in a customer supplier relationship and how to repair it. Design/methodology/approach The approach takes a single case study to test the established theories on trust. It captures the circumstances and conditions of everyday situation in business and it is a longitudinal study covering three years' experience of two organisations in business. Findings The important findings of this case study are that knowledge, level of risk and level of risk tolerance of customers/suppliers are the main causes of trust break down. Though the research on trust focus on partner's characteristics such as benevolence, honesty, reliability, credibility, integrity, contracts, agreements etc., in the context of B2B relationship these perspectives can only help the partners in evaluating the other partner as trust worthy. Once the partners engage in the relationship the orientation will change towards perspectives of rational risk. If the risk level exceeds their bearable limits, trust will break. Trust repair depends on the convincing power of the trustees, and how and why the trustor should bear the uncertainty or risk involved in the relationship. Research limitations/implications With its focus on two business partners this case cannot be generalised to all business settings. However, the in‐depth analysis stimulates further research on how trust may break between partners and how and who (trustor/trustee) should initiate trust repair process. Practical implications Practicing managers and research scholars can use this case in trust building process in customer supplier relationship. Originality/value The paper presents a case that is original.

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References

1994The Commitment-Trust Theory of Relationship Marketing 1990Foundations of social theory 1998Not So Different After All: A Cross-Discipline View Of Trust 1988Illusion and well-being: A social psychological perspective on mental health.1995AFFECT- AND COGNITION-BASED TRUST AS FOUNDATIONS FOR INTERPERSONAL COOPERATION IN ORGANIZATIONS.1997An Examination of the Nature of Trust in Buyer-Seller Relationships 1967A new scale for the measurement of interpersonal trust1 1998Between Trust and Control: Developing Confidence in Partner Cooperation in Alliances

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