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Journal of Management Sciences - Volume 10, Issue 2 2023
By Ambreen Shakir, Salma Ahmed
10.20547/jms.2014.2310204
Keywords: Asset Specificity, Legal Contracts, Trust, Supply chain Management.
In order to strengthen the relationship between manufacturers and their suppliers, it is necessary to focus on the level of trust between them and how this trust can be made stronger. This review paper tries to determine whether the constructs of ''transaction cost economics'' like ''asset specificity'' and the '' legal contracts'' possess any effect on trust in a manufacturer-supplier relationship. Furthermore, it will also find that whether this relation is positive or negative in nature. The study is a systematic literature review based on the already published literature. Result of this study suggests that out of seven specific assets, only two types of specific assets i.e., ''human specific and site-specific assets'' have a positive and direct effect on trust between a manufacturer and its supplier. Enough literature is not present which can establish a direct relation between dedicated and physical specific assets and trust. ''Temporal, brand capital, and procedural asset specificity'' does not have any direct effect on trust. Contracts do have positive relationship with the level of trust.
Submission Date: 19 Jul, 2023 Reviews Completed: 2 Oct, 2023Acceptance Date: 11 Oct, 2023 Publication Date: 18 Oct, 2023