Navigating diversity in supply chain relationships: building trustworthiness through complementary and supplementary fits

Abstract

Purpose

Supply chain (SC) professionals are increasingly working alongside business partners of diverse backgrounds, which has been argued to engender both innovation and creativity but also found as potentially detrimental to SC relationships and performance. To reconcile these views, this study explores two mechanisms – supplementary (similarity) and complementary fits – at the surface (observable traits) and deep (unobservable characteristics) levels and their impact on a focal firm representative’s perception of a SC partner’s trustworthiness.

Design/methodology/approach

Model was tested using survey data from 285 managers involved in interorganizational SC relationships.

Findings

Results indicate that a focal firm representative’s perception of supplementary and complementary fits with a SC partner positively impacts their perception of the partner’s trustworthiness. However, the effects of similarity at both surface and deep levels and complementarity weaken each other.

Practical implications

Understanding the mechanisms of diversity in SC relationships is crucial for fostering trustworthiness and achieving organizational objectives. Firms should evaluate both supplementary and complementary fits when hiring or assigning roles. Embracing a complementary fit not only promotes diversity but also mitigates the negative impact of similarity bias, ultimately strengthening trustworthiness within the organization's SC ecosystem.

Originality/value

By simultaneously examining individual and combined effects of two unique mechanisms of supplementarity and complementarity at the surface and deep levels, this study sheds light on inconsistent findings of the effects of diversity in the SCM literature.

Citation

Ta, H., Kumar, P., Hofer, A.R. and Jin, Y.“. (2024), "Navigating diversity in supply chain relationships: building trustworthiness through complementary and supplementary fits", International Journal of Physical Distribution & Logistics Management, Vol. 54 No. 9, pp. 877-902. https://doi.org/10.1108/IJPDLM-02-2024-0090