Trust and commitment in relationships among medical equipment suppliers: Transaction cost and social exchange theories

• Cheng-Min Chao

  National Yunlin University of Science and Technology

• Cheng-Tao Yu

  National Yunlin University of Science and Technology

• Bor-Wen Cheng

  National Yunlin University of Science and Technology

• Pen-Chen Chuang

  National Yunlin University of Science and Technology

Successful supply chain management can reinforce the competitive strength of hospitals. In this study we applied transaction cost theory and social exchange theory to the development of trust and commitment in supply chain relationships. Data were collected from procurement personnel who are in charge of selecting medical device suppliers in 128 hospitals in Taiwan. The results showed that managerial decision variables such as asset specificity, communication, and perceived benefits had a positive effect on trust. However, behavioral uncertainty had a significant negative effect on trust and trust had a significant positive effect on commitment. The findings provide a reference for partnerships between hospitals and suppliers and for managerial decision variables in medical supply chain management, as well as a method for successful supply chain management in the medical field.

1. Cheng-Min Chao, National Yunlin University of Science and Technology
   Department of Industrial Engineering and Management
2. Cheng-Tao Yu, National Yunlin University of Science and Technology
   Department of Industrial Engineering and Management
3. Bor-Wen Cheng, National Yunlin University of Science and Technology
   Department of Industrial Engineering and Management and Department of Institute of Global Operations Strategy and Logistics Management
4. Pen-Chen Chuang, National Yunlin University of Science and Technology
   Department of Institute of Global Operations Strategy and Logistics Management

• PDF
  (USD 29)