The Need for Inter-Organizational-Trust in Web-Enabled Supply Chain Management

Abstract

The Internet has changed the way in which supply chains are managed, planned and controlled. The information, decisions, and processes that form supply chain management are moving towards the web, and are breaking old paradigms of inter-organizational boundaries. While it is true this is not the whole story without proper integration of technology and people, much time and capital can be wasted. Businesses that want to succeed in this new e-commerce environment need to enhance communications and build trust among their channel partners. The aim of this paper is to explore insights on the importance of trust among channel partners in web-enabled supply chain management activities. Trust dimensions were examined in four organizations using an in-depth case study approach in the data communications and telecommunications industry. The findings indicate that the type and complexity of e-commerce applications (I OS) and channel partner relationships can affect trust. Overall, the findings contribute to the importance of channel partner trust in web-enabled supply chain management.