The Influence Of Credibility On Satisfaction With Supplier Performance In The Inter-Organizational Relationship

Abstract

Retailers facing volatile environments feel the various levels of satisfaction with suppliers’ performance. Existing literature suggests that the social context in which exchange parties are deeply embedded should be considered for estimating the effect of environments on performance. It is proposed, in this paper, that the level of trust (high and low) affects the retailer’s level of satisfaction with supplier performance in volatile environments. The empirical results from US retailers indicate that retailers’ satisfaction with supplier performance is negatively associated with environmental volatility when a retailer’s trust in its supplier is low, but it has no relationship with environmental volatility when there is high trust.