How Trust And Commitment Among Organizations Affect The Interconnectedness Based On Transaction Cost Theory

With the development of the economy, the competition under the traditional mode of enterprise has been transformed into competition between the supply-chain, companies increasingly pay attention to the cooperation with other enterprises on the supply chain. And In order to get better cooperation, organization will have to consider the cost, especially how much cooperation cost after the cooperation. It’s the important factor of organization can achieve higher benefits that how to define and reduce the cost. This article is based on this problem, the key research is on organization interconnectedness cost and its influence factors, the definition of related empirical analysis was carried on.Based on relevant theoretical and empirical analysis of scholars both at home and abroad, from the perspective of the relationship between supply-chain organizations, this paper probes into the concept of interconnectedness cost and its components, and extracted two factors that trust and commitment, which affect the interconnectedness cost from the cooperation of supply chain characteristics. This study based on defining the concept of interconnectedness cost divided it into initial cost, transfer cost and feedback cost.According to the characters of the interconnectedness of supply chain enterprise behavior, trust and commitment is regard as two major factors affect the cost of interconnectedness, and this two factors can be divided into the four dimensions: organizational reputation, information sharing, avoid conflict, transaction efficiency. Stable cooperation in the supply chain, researchers generally emphasized the importance of trust and commitment, not only because they can promote cooperation, but also they are the invisible power of consolidate cooperation relationship between organizations. Due to the difference of reputation and ability of various organizations in the supply chain, degree of trust between each other is different. However, the current academic research more focused on the organization internal characteristics or intrinsic properties to discuss the impact of trust mechanism between organizations, few will organize the cooperation between the external environment factors into account, especially the change of external environment change transaction cost,which brought about the uncertainty of trust between organizations. In view of this, this article based on the transaction cost theory, regard the trust and commitment between organizations in the supply chain as the research object, through the empirical analysis to explore trust and commitment is how to the impact on the interconnectedness cost. Thus established the tust,commitment and interconnectedness cost of theoretical framework, and put forward relevant assumptions. In Zhenjiang in supply chain cooperation experience of enterprises, the questionnaire survey to use SPSS and AMOS software to analyze the hypothesis and verification, inspection interorganizational trust and commitment to the influence of the organization’s interconnectedness cost.The empirical study shows that organization scale, organizational reputation, to improve information sharing degrees have a positive influence on organizational trust; Size, working time, cultural difference degree has positive influence on organizational commitment degree; At the same time, the trust degree of commitment between partners are not, can also prompt cooperation organization interconnectedness between cost reduction; Trust degree between the uncertainty of the environment and affect the organization of an external interference variables, and the specificity of assets investment was not significant influence on trust between partners. Finally, form a good trust between enterprises and how to reduce cost of interconnectedness puts forward some suggestions.Through the study of text for the cooperation between organizations can further reduce the cost of interconnectedness and establish more perfect and stable relationship of trust and commitment to provide the necessary basis.