Supply Chain Partner’s Perceptions of Trust & Risk: The Perspectives of UAE Printing and Packaging Industry

Theoretical Back Ground And Research Hypothesis

When the supply chain members have access to complete mutual information about economics, capabilities, consequences, controls and if trustor is certain that there is no uncertainty or risk involved in the relationship then trust has no relevance; complete knowledge obviates the need for trust but it can be there. On the other hand when the members lack information about the trustee and the trustor is in the state of total ignorance of future outcome of the relationship there can be no reason to trust and it need not be there, as risk prevails. Thus trust cannot exist in an environment of certainty, if it did, it would be so trivially (Bhattacharya et al., 1998) and some level of uncertainty is required for trust to emerge (Dasgupta, 1998). In supply chain partner relationship some element of uncertainty and risk is always present from various perspectives therefore trust is a relatively informed attitude (a rational choice) or propensity to allow oneself and perhaps others to be vulnerable to harm in the interest of some perceived greater good and it depends on the context and perspective from which the supply chain members make their decision to trust or becoming vulnerable (take risk) to relationship.