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Trust in Face-to-Face and Electronic Negotiation in Buyer–Supplier Relationships: A Laboratory Study

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Behavioral Issues in Operations Management

Abstract

The purpose of this chapter is to study the role of pre-existing trust as a key factor for successful buyer–supplier relationships in electronic versus face-to-face negotiation mechanisms. It is known that e-sourcing can damage the buyer–supplier relationship, whereas face-to-face discussions can help elicit collaboration intentions and build trust. However, it is less recognized whether having established a prior trusting relationship can positively affect outcomes and strengthen the relationship even when electronic mechanisms are used. We explore such an issue by conducting a laboratory study which compares three negotiation mechanisms (i.e., face-to-face negotiation, e-mail negotiation, and e-reverse auction) across two pre-existing levels of buyer–supplier trust (i.e., high-trust and low-trust) in terms of their impact on perceived relational outcomes. Results confirm that higher pre-existing trust is linked to higher relational outcomes than low pre-existing trust; face-to-face negotiation is associated with higher supplier’s perceived trust and satisfaction in dealing with the buyer compared to the e-mail negotiation and e-reverse auction. Furthermore, in the context of high pre-existing trust e-reverse auctions may not necessarily undermine existing relationships.

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Author information

Authors and Affiliations

  1. CEVA Logistics Italy, Strada 3, Assago, Milan, 02 892301, Italy

    Rossella Moramarco

  2. University of Maryland, Van Munching Hall, College Park, Marryland, 20742, USA

    Cynthia Kay Stevens

  3. Department of Mechanics Mathematics and Management, Polytechnic University of Bari, Viale Japigia 182, Bari, 70126, Italy

    Pierpaolo Pontrandolfo

Authors
  1. Rossella Moramarco
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  2. Cynthia Kay Stevens
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  3. Pierpaolo Pontrandolfo
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Corresponding author

Correspondence to Rossella Moramarco .

Editor information

Editors and Affiliations

  1. , Mechanics, Mathematics, & Management, Polytechnic University of Bari, viale Japigia 182, Bari, 70126, Italy

    Ilaria Giannoccaro

Appendix. Measures

Appendix. Measures

Trust

  1. 1.

    This company keeps the promises it makes to my company.

  2. 2.

    This company is not always honest with my company (reverse coded item).

  3. 3.

    My company believes the information that this company provides us with.

  4. 4.

    When making important decisions, this company considers my company’s welfare as well as its own.

  5. 5.

    My company finds it necessary to be cautious with this company (reverse coded item).

  6. 6.

    This company is genuinely concerned that our business succeeds.

  7. 7.

    My company trusts this company to keep our best interests in mind.

  8. 8.

    This company is trustworthy.

Perception of opportunism

  1. 1.

    In future interactions, I believe this company would be unwilling to accept responsibility for its mistakes.

  2. 2.

    In future interactions, I believe this company would provide us with false information.

  3. 3.

    In future interactions, I believe that this company would try to “nickel and dime” us.

Satisfaction with dealing

  1. 1.

    Dealing with this company benefits your company.

  2. 2.

    My company is satisfied with the dealings with this company.

  3. 3.

    This company is a good company to do business with.

Expectation of continuity

  1. 1.

    I expect to continue working with this company on a long-term basis.

  2. 2.

    The relationship with this company will last far into the future.

Desire for future dealings

  1. 1.

    Based on your experience in this negotiation, to what degree are you willing to have future dealings with this company?

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Moramarco, R., Stevens, C.K., Pontrandolfo, P. (2013). Trust in Face-to-Face and Electronic Negotiation in Buyer–Supplier Relationships: A Laboratory Study. In: Giannoccaro, I. (eds) Behavioral Issues in Operations Management. Springer, London. https://doi.org/10.1007/978-1-4471-4878-4_3

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  • DOI: https://doi.org/10.1007/978-1-4471-4878-4_3

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  • Publisher Name: Springer, London

  • Print ISBN: 978-1-4471-4877-7

  • Online ISBN: 978-1-4471-4878-4

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