The Impact of Trust and Dependency on Business Performance: A Study of SME Suppliers

William C. McDowell, Michael L. Harris, Shanan G. Gibson

Abstract


The purpose of this study is to examine the extent to which trust and dependence are predictive of performance for small and medium sized vendors. Using a sample of 134 university vendors in the southwest region of the U.S., regression was used to test  hypotheses related to both constructs while controlling for the organizational attributes of size, years working as a supplier to the buyer, and years working with the existing company. Results indicate that both trust and dependence are significant predictors of supplier performance for SMEs in the supply chain relationship.

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 University of Houston-Clear Lake