The effects of goodwill and competence trust on strategic information sharing in buyer–supplier relationships

Abstract

PurposeThe purpose of this paper is to explore how the choice of buying managers to share or limit the sharing of strategic information with their suppliers relates to the presence or absence of goodwill and competence trust in the buyer–supplier relationship.Design/methodology/approachAn interpretive single case study of a mid-sized retailer was used. In total, 17 semi-structured interviews examining information sharing events were conducted with buying managers, along with the analysis of company documents.FindingsGoodwill and competence trust have a positive effect on strategic information sharing, yet this study reveals several tactics used by buying managers in the presence of competence trust only. With a lack of established trust, or earlier trust breaches, little to no information sharing occurs.Research limitations/implicationsThis study featured cross-sectional data of a single case from the buyer’s perspective. This limits its generalizability, yet provides opportunities to test the findings through longitudinal studies, potentially gathering data from both buyers and suppliers.Practical implicationsRelating which types of information being shared for different forms of trust guides managers’ expectations on which type of trust they wish to build for each of their buyer–supplier relationships.Originality/valueThis study examines the trust and information sharing relationship in more detail, linking different types of trust to categories of strategic information. It also distinguishes between the different concepts of encouraging information sharing and deliberately limiting strategic information sharing.