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Establishing Trust and Trustworthiness for Supply Chain Information Sharing

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Book cover Handbook of Information Exchange in Supply Chain Management

Part of the book series: Springer Series in Supply Chain Management ((SSSCM,volume 5))

Abstract

In this chapter, we discuss when, how, and why trust and trustworthiness arise to support credible information sharing and cooperation in a supply chain. Synthesizing our learning, we identify the four building blocks of trust and trustworthiness as personal values and norms, market environment, business infrastructure, and business process design. We elaborate on these building blocks and offer tangible insights into how to establish more trusting and cooperative supply chain relationships.

“I know who I can depend on, I know who to trust I’m watching the roads, I’m studying the dust.” – Bob Dylan

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Notes

  1. 1.

    The example applies to a general supply chain dyad (e.g., supplier-manufacturer or manufacturer-retailer) in which the downstream member has better demand information than the upstream one and the upstream production leadtime is longer than the downstream delivery leadtime.

  2. 2.

    We refer the reader to Part 2 of this book for a more detailed discussion on this line of research.

  3. 3.

    These scenarios are adapted from the Trust Game, the Risky Dictator Game, and the Decision Problem originally designed by Bohnet and Zeckhauser (2004). We modify the terminologies from the original design to fit into a supply chain context.

  4. 4.

    Readers who are interested in using the forecast information sharing game in their own organizations are encouraged to visit the game website: forecastsharing.com. The authors have provided easy-to-follow instructions on the website to explain how one can set up and run the game to illustrate when and how trust and the environment interact to affect business decisions.

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Author information

Authors and Affiliations

  1. Jindal School of Management, The University of Texas at Dallas, Richardson, TX, 75080, USA

    Özalp Özer

  2. Sloan School of Management, Massachusetts Institute of Technology, Cambridge, MA, 02139, USA

    Yanchong Zheng

Authors
  1. Özalp Özer
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  2. Yanchong Zheng
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Correspondence to Özalp Özer or Yanchong Zheng .

Editor information

Editors and Affiliations

  1. Hong Kong University of Science and Technology, Kowloon, Hong Kong

    Albert Y. Ha

  2. University of California, Los Angeles, California, USA

    Christopher S. Tang

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Özer, Ö., Zheng, Y. (2017). Establishing Trust and Trustworthiness for Supply Chain Information Sharing. In: Ha, A., Tang, C. (eds) Handbook of Information Exchange in Supply Chain Management. Springer Series in Supply Chain Management, vol 5. Springer, Cham. https://doi.org/10.1007/978-3-319-32441-8_14

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