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Trust and contract effects on the efficiency of the supplier-manufacturer relationships: A dyadic perspective
Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics.
Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics.
2012 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Business Administration, Business Process & Supply Chain Management, Degree Project (master), 15 higher education credits, 4FE06E, Spring 2011

Authors: Marjorie Laporte and Jérôme Le Duff Tutor: Fredrik Karlsson

Title: Trust and contract effects on the efficiency of the supplier-manufacturer relationships – A dyadic perspective

Background: The current global situation leads to a tightening of the supply chains. Since supply chain management is primarily about managing relationships, developing an efficient relationship appears to be the best way to stay competitive. Trust and contracts are elements that influence the efficiency of the relationships, but there is a debate concerning the way they impact efficiency. The focus has been made on the supplier-manufacturer relationships.

Purpose: The purpose of this paper is to investigate the supplier-manufacturer relationships of Ferrero France, in order to increase the understanding of trust in relation to different types of contracts, while providing a managerial contribution by describing their impact on efficiency.

Method: Interviews have been run among Ferrero France, manufacturer of confectionery products, and two of its suppliers. The empirical findings have been analyzed and compared to the existing theory in order to draw relevant conclusions. The results and conclusions also give rise to a broader strategic reflection about the impact of trust and contract on the whole supply chain, and not only on the supplier-manufacturer relationship.

Results, conclusions: The results of this research point out some similarities and differences compared to the existing theory. The dyadic perspective provides a broader point of view, and results in stating that trust is the most important factor leading to efficiency. Moreover, several types of contracts exist. Formal contracts and trust are substitutes and can work together to improve the efficiency, even if the legal framework may limit the increase of efficiency. Informal contracts and trust have a much moreTrust and contract effects on the efficiency of the supplier-manufacturerrelationshipsMaster Thesis – Spring 20123important relationship, and are key elements to achieve greater efficiency and long-term success of the supplier-manufacturer relationship, as well as the whole supply chain. This study provides managers with a better understanding of the role of trust and contract to improve the competitiveness of the whole supply chain, while contributing to enrich the existing theory with new perspectives.

Place, publisher, year, edition, pages
2012. , 131 p.
Keyword [en]
contracts, trust, supply chain, supplier, manufacturer, relationship, efficiency, formal, informal
National Category
Business Administration
URN: urn:nbn:se:lnu:diva-20721OAI: diva2:540326
Subject / course
Business Administration - Other
Educational program
Business Process and Supply Chain Management, Master Programme, 60 credits
Social and Behavioural Science, Law
Available from: 2012-07-11 Created: 2012-07-09 Last updated: 2012-07-11Bibliographically approved

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