The Influence of Power on Trust in Buyer–Supplier Relationships: An Actor−Partner Interdependence Approach

Trust is among the most critical factors in buyer–supplier relationships. In an effort to understand the origins of trust, power has become the focus of a burgeoning body of literature. However, research on the association between power and trust has been plagued by inconsistencies in terms of whose power and trust are being examined, which has led to confusion and hindered cumulative progress. We address this issue by disentangling the effect of the focal organization (actor effect) from the effect specific to its partner (partner effect) and accounting for both simultaneously. We further theorize and show that the partner's level of self-promotion communication about his or her own achievements and credentials moderates both actor and partner effects, thus adding knowledge about a contingency that accounts for a considerable degree of variation in the linkage between power and trust. Using multi-informant, dyadic survey data paired with archival information scraped from firms’ webpages, we find that (i) actors low (vs. high) in power tend to place more trust (ii) while simultaneously eliciting higher levels of trust from their partners; however, (iii) these effects differ markedly depending on the partner's level of self-promotion communication. Our study offers a novel, integrative perspective on power and trust, and we elaborate on its important implications for understanding buyer–supplier relationships.