Measuring Trust in Decentralized Supply Chain

Abstract

Trust is a significant role-playing factor in supplier-customer relationship and is known as a fundamental ingredient in supply chain. In this research, a multi-round trust measurement through questionnaires is administrated in the context of a laboratory experiment. We distinguish between trust in supplier and trust in customer and measure them in a serial multi-echelon inventory system. The validity and reliability of the proposed trust measurement are analyzed and its applicability demonstrated. Results show that trust does develop in decentralized supply chains, even in the absence of communication and with no access to market demand. It is found that trust level varies in a continuum of intensity and that trust evolves over time. Furthermore, we observe that trust in supplier is the lowest in the middle of the supply chain and that trust in customer decreases while moving upstream along a decentralized supply chain.

Keywords: rust perception, trust in supplier, trust in customer, decentralized supply chain