INFLUENCE OF BUYER-SUPPLIER TRUST ON PERFORMANCE OF FOREIGN BASED DEVELOPMENT AGENCIES IN KENYA
View/ Open
Date
2018Author
Karungani, Walter
Guyo, Wario
Otieno, Romanus Odhiambo
Getuno, Pamela
Metadata
Show full item recordAbstract
Buyer-supplier trust is critical for supply chain performance. Geographically distanced firms like foreign based development agencies just like multinationals that operate in diverse markets need to build trust with possible business partners for their benefit. Using data obtained from 111 employees who included senior managers, procurement officers and accountants from 37 foreign based development agencies in Kenya, this study obtained positive moderately weak relationship between buyer-supplier trust and firm performance. The study concludes that a strong bond between buyers and suppliers has a positive influence on firm performance. The study recommends that organizations should aim to grow their bonds of trust while weakening asymmetries between the buyer and the supplier.