Journal of the Korean Geographical Society ISSN:1225-6633(Print) 대한지리학회지

This paper provides an empirical analysis of the effects of trust determinants on firm performance in the buyer-supplier relationships by considering warehousing firms in Busan, South Korea. We employed AVAS transformation regressions to address the limitations of linear regressions and found nonlinear relationships between firm performance and trust determinants. Specifically, “longterm and repeated interactions,” “geographical proximity,” and “cultures and norms of firms and formal institutions” had positive linear relationships with firm performance, and “information sharing and reciprocity” induced an increasing pattern in firm performance. Finally, “interdependence and asset specificity” and “uncertainty removal” led to a decreasing pattern in firm performance. These results suggest that the relationship between trust and firm performance is contingent on the trust determinants that are important source of trust in buyer-supplier relationships and the influence of trust determinants on firm performance varied according to their levels.