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  • Martins POMS2012 v2

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    The document discusses the role of trust in creating and sharing value in buyer-supplier relationships. It makes three key points: 1) Trust facilitates buyer-supplier relationships by minimizing costs and increasing cooperation and information sharing. Competence-based trust and goodwill-based trust affect how value is created and captured. 2) Total value is created through buyer-supplier relationships, with both parties able to capture some of that value depending on factors like opportunity costs, prices, and willingness to pay. 3) Higher levels of goodwill-based trust allow more value to be created through the relationship and shared between the buyer and supplier. The appropriate research method to study this depends on whether variables need control or real

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    The document discusses the role of trust in creating and sharing value in buyer-supplier relationships. It makes three key points: 1) Trust facilitates buyer-supplier relationships by minimizing costs and increasing cooperation and information sharing. Competence-based trust and goodwill-based trust affect how value is created and captured. 2) Total value is created through buyer-supplier relationships, with both parties able to capture some of that value depending on factors like opportunity costs, prices, and willingness to pay. 3) Higher levels of goodwill-based trust allow more value to be created through the relationship and shared between the buyer and supplier. The appropriate research method to study this depends on whether variables need control or real

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    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    Download as pptx, pdf, or txt
    16 views20 pages

    Martins POMS2012 v2

    Uploaded by

    Guilherme Martins
    The document discusses the role of trust in creating and sharing value in buyer-supplier relationships. It makes three key points: 1) Trust facilitates buyer-supplier relationships by minimizing costs and increasing cooperation and information sharing. Competence-based trust and goodwill-based trust affect how value is created and captured. 2) Total value is created through buyer-supplier relationships, with both parties able to capture some of that value depending on factors like opportunity costs, prices, and willingness to pay. 3) Higher levels of goodwill-based trust allow more value to be created through the relationship and shared between the buyer and supplier. The appropriate research method to study this depends on whether variables need control or real

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 20

    So Paulo Business School

    The Role of Trust in Appropriation of Value Created in Buyer-Supplier Relationships


    MARTINS, Guilherme S. BRITO, Luiz A. MIGUEL, Priscila L. S.
    FGV-EAESP - Brazil

    So Paulo Business School

    Buyer-supplier relationships
    Vertical collaborative relationships: achieving sustainable competitive advantage
    SCM: Chen & Paulraj, 2004; Terpend, Tyler, Krause, & Handfield, 2008 (reviews); Strategy: Lazzarini, Miller, & Zenger, 2008; Mayer & Salomon, 2006; Mesquita & Brush, 2008.

    Relational rents (Dyer & Singh, 1998).

    So Paulo Business School

    Trust
    Facilitator mechanism:
    Its minimize transactions costs, lowers levels of conflict, and increases information sharing and cooperation (McEvily, Perrone, & Zaheer, 2003).
    Effective coordination of both tasks as well as incentives (Gulati, Lawrence, & Puranam, 2005; Mesquita &
    Brush, 2008).

    So Paulo Business School

    How much value is created?


    The problem of firm-level studies.
    Total Value created by a firm $ Opportunity Cost Captured by supplier Cost Price Willingness to pay Captured by custumer

    Captured by firm

    Source: Brandenburger e Stuart Jr. (1996)

    So Paulo Business School

    Value created by buyer-supplier relationship


    Value captured by buyer
    $

    Opportunity Cost

    Cost

    Price

    Willigness to pay

    Buyer

    $ Opportunity Cost Cost Price Willingness to pay

    Supplier

    Value captured by supplier

    Total value created by relationship

    So Paulo Business School

    Trust: creating and sharing value


    Trust has been found to positively effect on buyer supplier relations.
    (for reviews, see McEvily and Tortoriello, 2011; Zaheer and Harris, 2006)

    Is Trust Without Measure a Good Measure of Trust?

    So Paulo Business School

    Trust: multidimensional concept


    Competence-based trust:
    being confident to other partys ability to perform as expected.

    Goodwill-based trust:
    a perception that the other party will behave in a trustworthy (non-opportunist) manner.

    So Paulo Business School

    Value created by buyer-supplier relationship


    $
    Opportunity Cost Cost Price Willigness to pay

    Buyer

    $ Opportunity Cost Cost Price Willingness to pay

    Supplier

    Total value created by relationship

    Competencebased trust

    So Paulo Business School

    Value created by buyer-supplier relationship


    $
    Opportunity Cost Cost Price Willigness to pay

    Buyer

    $ Opportunity Cost Cost Price Willingness to pay

    Supplier

    Total value created by relationship

    Competencebased trust

    So Paulo Business School

    Value created by buyer-supplier relationship


    $
    Opportunity Cost Cost Price Willigness to pay

    Buyer

    $ Opportunity Cost Cost Price Willingness to pay

    Supplier

    Total value created by relationship

    Competencebased trust

    So Paulo Business School

    Value created by buyer-supplier relationship


    $
    Opportunity Cost Cost Price Willigness to pay

    Buyer

    $ Opportunity Cost Cost Price Willingness to pay

    Supplier

    Total value created by relationship

    Competencebased trust

    So Paulo Business School

    Value created by buyer-supplier relationship


    $
    Opportunity Cost Cost Price Willigness to pay

    Buyer

    $ Opportunity Cost Cost Price Willingness to pay

    Supplier

    Total value created by relationship

    Goodwill-based trust

    So Paulo Business School

    Value created by buyer-supplier relationship


    $
    Opportunity Cost Cost Price Willigness to pay

    Buyer

    $ Opportunity Cost Cost Price Willingness to pay

    Supplier

    Total value created by relationship

    Goodwill-based trust

    So Paulo Business School

    Value created by buyer-supplier relationship


    $
    Opportunity Cost Cost Price Willigness to pay

    Buyer

    $ Opportunity Cost Cost Price Willingness to pay

    Supplier

    Total value created by relationship

    Goodwill-based trust

    So Paulo Business School

    Value created by buyer-supplier relationship


    $
    Opportunity Cost Cost Price Willigness to pay

    Buyer

    $ Opportunity Cost Cost Price Willingness to pay

    Supplier

    Total value created by relationship

    Goodwill-based trust

    So Paulo Business School

    Value created by buyer-supplier relationship


    $
    Opportunity Cost Cost Price Willigness to pay

    Buyer

    $ Opportunity Cost Cost Price Willingness to pay

    Supplier

    Total value created by relationship

    Excess of Goodwill-based trust

    So Paulo Business School

    Value created by buyer-supplier relationship


    $
    Opportunity Cost Cost Price Willigness to pay

    Buyer

    $ Opportunity Cost Cost Price Willingness to pay

    Supplier

    Total value created by relationship

    Excess of Goodwill-based trust

    So Paulo Business School

    Goodwill-based trust
    45 40 35 30

    Value

    25 20 15 10 5 0 0 2 4 6 8 10

    Trust

    So Paulo Business School

    Methodological remarks
    Survey or Experiment?
    Real world vs. variables control?

    So Paulo Business School

    Thank you!
    Guilherme S. Martins
    mr.gsmartins@gmail.com

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