Document Type
Conference Proceeding
Department or Administrative Unit
Finance and Supply Chain Management
Publication Date
2011
Abstract
Based on the transaction cost theory, this study proposes a research model that links trust, joint manufacturing activities, and supplier flexibility. In this model, supplier dependability trust and financial alignment are viewed as the key drivers of joint manufacturing activities between manufacturers and suppliers. These joint manufacturing activities, in turn, improve the supplier‟s ability to achieve manufacturing flexibility. Based on 208 responses from the suppliers in the U.S. and China, this study provides empirical evidences to suggest that supplier dependability trust and financial alignment positively promote manufacturer-supplier joint manufacturing activities. The results also suggest that the joint manufacturing activities enhance supplier flexibility in a significant way.
Recommended Citation
Liao, K. & Deng, X. (2011). Building Dependability and Benevolence Trust to Achieve Flexibility through Joint Manufacturing Activities in Supply Chain. Decision Sciences Institute Annual Meeting, 42.
Journal
Decision Sciences Institute Annual Meeting