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Implementing supply chain information integration in China: The role of institutional forces and trust ⋆
Author(s) -
Cai Shaohan,
Jun Minjoon,
Yang Zhilin
Publication year - 2010
Publication title -
journal of operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.649
H-Index - 191
eISSN - 1873-1317
pISSN - 0272-6963
DOI - 10.1016/j.jom.2009.11.005
Subject(s) - guanxi , business , information sharing , government (linguistics) , china , structural equation modeling , salient , affect (linguistics) , supply chain , industrial organization , knowledge sharing , interpersonal communication , knowledge management , marketing , psychology , computer science , political science , law , social psychology , linguistics , philosophy , communication , machine learning , artificial intelligence , world wide web
Abstract This study investigates the effects of Chinese companies’ institutional environment on the development of trust and information integration between buyers and suppliers. Three aspects of China's institutional environment are salient: legal protection, government support, and the importance of guanxi (interpersonal relationships). This study uses structural equation modeling to analyze data collected from 398 Chinese manufacturing companies. Government support and importance of guanxi significantly affect trust, which subsequently influences two elements of information integration, namely, information sharing and collaborative planning. Furthermore, the importance of guanxi has a direct, positive impact on information sharing, and government support has a direct, positive effect on both information sharing and collaborative planning.