The Study Of Trust In Partnership Between Retailers And Suppliers

Faced with the increasingly complicated market, it's necessary for both retailers and suppliers to cooperate with each other in order to avoid the uncertainties of future and obtain the competitive advantages in the market. However, due to the conflict of their benefits and the existence of various inconsistencies between them, trust crisis between retailers and suppliers is seriously affecting their partnership and thus threatening their competitiveness. This paper analyzes the features of trust involved in partnership between retailers and suppliers and shows the important role of trust in promoting their partnership. Based on the analysis of how to establish mutual trust using the game theory, this paper gives the idea of trust arising form believable commitments and repeating gaming, and lastly how to develop mutual trust between retailers and suppliers is also discussed on the basis of a case study.