Trust Relationship with Suppliers, Collaborative Action, and Manufacturer Resilience in the COVID-19 Crisis

Abstract

Frequent emergencies highlight the importance of corporate resilience, and relationship governance behaviors have received much attention for improving firms’ resilience. This study uses structural equation modeling to test hypotheses based on trust theory and synergy theory. It investigates the impact of the behavioral operations management approach of collaborative action on manufacturers’ resilience in Chinese manufacturing firms during the COVID-19 pandemic. Environmental uncertainty is used as a moderating variable to explore its role between the trust relationship with suppliers and collaborative action, which are two types of relationship management behaviors. The results show that collaborative action positively affects each of the three stages of manufacturer resilience. Moreover, collaborative action mediates between the trust relationship with suppliers and the different dimensions of manufacturer resilience. Environmental uncertainty does not moderate the facilitative effect of the trust relationship with suppliers on collaborative action. This study examines the relational governance behavior of firms in the context of a particular Chinese culture to build a bridge between relational governance behavioral science and firm resilience management. This study tries to provide inspiration for managers to improve the risk management ability of manufacturing enterprises by using relationship management theory and behavioral science.