The Effect of Trust in Supply Chain on the Firm Performance through Supply Chain Collaboration and Collaborative Advantage

Trust in the supply chain leads to an increase in supply chain collaboration insert ignore into journalissuearticles values(SCC);  and subsequently in collaborative advantage insert ignore into journalissuearticles values(CA); and consequently affects firm  performance positively. Supply chain collaboration is an effective collaboration of  supply chain partners to succeed in a common goal. Concisely, the collaborative  advantage is the relative competitive advantage among companies. It refers to the  gathering, exchanging and improving the resources among the collaborating partners.  This research aims to clarify the relationship between trust in the supply  chain and firm performance through supply chain collaboration and collaborative  advantage. Analysis results show that trust in the supply chain positively affects  supply chain collaboration. Although the proposed model suggested a positive  relationship between trust in the supply chain and collaborative advantage, according  to the hypotheses test results, this relation is not statistically significant.  This means that trust in the supply chain has no direct effect on the collaborative  advantage, but has an indirect effect through supply chain collaboration on the collaborative  advantage. Finally, the positive effect of collaborative advantage on firm  performance has been found to be statistically significant.