Document Type

Conference Proceeding

Department or Administrative Unit

Finance and Supply Chain Management

Publication Date



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.


Decision Sciences Institute Annual Meeting