Trust and Commitment in Relationships Among Medical Equipment Suppliers: Transaction Cost and Social Exchange Theories

Abstract

Successful supply chain management can reinforce the competitive strength of hospitals. In this study we applied transaction cost theory and social exchange theory to the development of trust and commitment in supply chain relationships. Data were collected from procurement personnel who are in charge of selecting medical device suppliers in 128 hospitals in Taiwan. The results showed that managerial decision variables such as asset specificity, communication, and perceived benefits had a positive effect on trust. However, behavioral uncertainty had a significant negative effect on trust and trust had a significant positive effect on commitment. The findings provide a reference for partnerships between hospitals and suppliers and for managerial decision variables in medical supply chain management, as well as a method for successful supply chain management in the medical field.