Influence of Trust Relationships with Suppliers on Manufacturer Resilience in COVID-19 Era

ABSTRACT

With the frequent occurrence of emergencies such as the COVID-19 pandemic in recent years, resilience has become increasingly important for the stable and sustainable development of the manufacturing companies. Despite growing interest in supply chain resilience, less attention has been paid to manufacturer resilience and how to improve it through supplier relationship governance. Based on resource-based view (RBV) theory, trust theory and the literature on resilience, this study developed new constructs of measuring manufacturer resilience by temporal logic and sheds light on how the trust relationship with suppliers affect manufacturer resilience via the information-sharing level. The data is collected from 351 respondents who are independent directors or managers of manufacturing companies in China. This study adopted exploratory factor analysis (EFA) and structural equation modeling (SEM) to explore the dimensions of manufacturer resilience and to test the hypotheses. The results reveal that the trust relationship with suppliers has significant positive impacts on three dimensions of manufacturer resilience, that is, preparedness, responsiveness, and recovery capability. In addition, the information-sharing level partially mediates the impact of the trust relationship with suppliers on manufacturer resilience. Specifically, the information-sharing level positively affects preparedness, responsiveness, and recovery capability. Moreover, the trust relationship with suppliers facilitates the information-sharing level. Finally, the study contributes to the manufacturer resilience literature and provides useful guidance for the manufacturing enterprises in enhancing resilience quickly.