The Mediating Role of Communication in Interorganizational Channels

The overall objective of this article is to examine the impact of interorganizational channel bureaucratic structure on boundary interpersonal trust. The authors present a model where the bureaucratic structure (viz., formalization, participation and centralization) influences interpersonal communication, which functions as a mediator determining the level of interpersonal trust in the supply chain. The authors conceptualize communication as a multidimensional construct, reflective of both instrumental and social communications. The empirical study, conducted in a farm equipment supply chain, indicates that formalization and participation facilitate whereas centralization inhibits communication, which in turn enhances interpersonal trust. Theoretical and managerial implications as well as directions for further research are discussed at the end of the paper.