Original Research
Enabling information sharing by establishing trust in supply chains: A case study in the South African automotive industry
Submitted: 11 February 2011 | Published: 06 October 2011
About the author(s)
Roxanne Piderit, University of Fort Hare Nelson Mandela Metropolitan University, South AfricaStephen Flowerday, University of Fort Hare, South Africa
Rossouw Von Solms, Nelson Mandela Metropolitan University, South Africa
Abstract
Objectives: This paper explored the relationship between trust and information sharing in South African automotive supply chains, and establishes the importance of nurturing a cyclical relationship between these two factors. In addition, the role of information technology (IT) in supporting this relationship was considered. By improving both trust and information sharing, the performance and competitiveness of the supply chain can be improved.
Method: An examination of the effects of a lack of trust in a supply chain relationship, and the consequential lack of information flow, was conducted by means of a case study of an Eastern Cape-based automotive supplier. A case study research method was followed for this study, which made use of multiple data collection methods, including document survey and participant observations. The case selected is an East London based subsidiary of a larger multinational automotive component supplier to both local and international automotive original equipment manufacturers.
Results: The findings led to the conclusion that the way forward for competitive supply chains is to build trust in the supply chain in order to improve information flow, and vice versa. Information technology can be used to nurture this cyclical relationship between trust and information sharing.
Conclusion: It is proposed that simultaneously improving information flow and trust in an interorganisational relationship leads to improved supply chain performance and competitiveness.
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Crossref Citations
1. Managing the dependency of focal firms on innovative suppliers: A qualitative study of automotive manufacturers in South Africa
Assilah Agigi, Kelvinne Mocke, Iman Carrim, Logan Keen
Africa Journal of Management vol: 7 issue: sup1 first page: 31 year: 2021
doi: 10.1080/23322373.2021.1930740