Effect of Information Sharing on Dimensions of Trust and Logistics Performance

Purpose: This study aims to empirically analyze the effect of information sharing on the two dimensions of trust and logistics performance in the relationship between firms in the supply chain. Research design, data and methodology: In this study, information sharing is a variable for information competency of the entire supply chain. Moreover, we classified trust into quantitative and qualitative trust and analyzed the two paths through which information sharing reaches logistics performance. To examine these correlations, we conducted a survey among professionals in supply chain-related departments in South Korea. Based on 350 completed questionnaires, we tested the hypotheses with structural equation modeling using SPSS 18.0 and AMOS 18.0. Results: We found that information sharing has a significant positive effect on trust and logistics performance, which is a typical index of supply chain performance. These results show that information itself is considered a partner to a firm's competencies in operating the supply chain and plays a major role in forming the other's competencies and trust for the present and future. Conclusions: As these competencies and trust consequentially affect logistics performance, supply chain managers must pay attention to the importance of information competency and consider ways of promoting it to improve logistics performance across the entire supply chain.