Podcast Beta
Questions and Answers
A higher degree of trust and commitment can lead to increased opportunism in buyer-supplier relationships.
False
Commitment in buyer-supplier relationships does not affect supply chain performance.
False
The frequency of communication between buyers and suppliers is not based on the perceived benefits of the relationship.
False
Relationship duration is not affected by the level of trust between buyers and suppliers.
Signup and view all the answers
A supplier's reputation is not a key factor in buyer-supplier relationships.
Signup and view all the answers
Supply chain performance is not affected by the level of commitment in buyer-supplier relationships.
Signup and view all the answers
Trust is not a key factor in reducing opportunism in buyer-supplier relationships.
Signup and view all the answers
The duration of relationship between buyers and suppliers is not affected by the level of experience gained in dealing with each other.
Signup and view all the answers
Study Notes
Trust and Commitment
- Higher degree of trust and commitment in buyer-supplier relationships reduces opportunism and promotes inter-organizational cooperation.
- Commitment leads to the creation of a more sustainable business organization and interdependent relationships between buyers and suppliers.
Supply Chain Performance
- Degree of commitment in buyer-supplier relationships affects supply chain performance.
- Commitment helps in achieving common goals and efforts between buyers and suppliers.
Frequency of Communication
- Frequency of communication refers to the degree of contact and interaction between buyers and suppliers.
- The frequency of communication is based on the benefits perceived by both parties in the relationship.
Relationship Duration
- Duration of relationship reflects the level of experience gained, developed behaviors and norms, and investment in relationship-specific assets.
- Trust is a key factor in determining the duration of the relationship between buyers and suppliers.
Consequences of Trust
- As trust increases, buyers and suppliers act collectively, investing in each other's capabilities.
- Trust leads to joint problem-solving, design of new products, and shared planning.
- Trust results in a longer and closer relationship, enabling parties to share risks and rewards.
Reputation
- Reputation is a main selection criterion and characteristic of suppliers in buyer-supplier relationships.
- Reputation is an intangible asset that reflects the extent to which suppliers are fair, honest, and concerned with their buyers.
- Positive reputation raises the degree of buyer's trust, increases willingness to lengthen the relationship duration, and enhances commitment to the relationship.
Interrelationship between Factors
- Reputation is interrelated with trust, commitment, and relationship duration.
- Positive reputation reinforces trust, commitment, and relationship duration.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz assesses the importance of trust and commitment in supply chain management, particularly in buyer-supplier relationships. It explores how these factors impact supply chain performance and inter-organizational cooperation.
