Relationship between trust, the investment model and logistics performance in supply chain management

Abstract

PurposeThis study examines the relationship between trust, the investment model and logistics performance and the importance of commitment between companies in the supply chain. Furthermore, it analyzes satisfaction, quality of alternatives, investment size and commitment level, which are the constituent factors of the investment model, and reviews trust and logistics performance to ascertain their causal relationship.Design/methodology/approachThe authors examined employees working in supply chain-related departments in Korean companies and further conducted an online survey for a month in January 2022 through the survey agency Entrust Survey, through which the authors distributed a total of 4,082 questionnaires and collected and used a total of 300 questionnaires for statistical analysis. The authors then validated the hypotheses using SPSS 18.0 and AMOS 18.0 using the structural equation modeling method.FindingsThe results showed that trust significantly and positively affects satisfaction levels in the relationship between companies in the supply chain. Trust can lower uncertainty in the transaction process between companies.Originality/valueIn this study, the investment model, which has been predominantly observed in the field of family psychology, was applied to business studies. In addition, the investment model was extended to enable its application to supply chain management research, thereby offering a distinctive research model from preceding studies.