Factor analysis of rational trust among supply chain partners in Indian industries

Primary purpose of this paper is to apply factor analysis on the data collected for Rational Trust; second by to reduce the data collected to a few factors; third, to propose names of the factors and finally to develop a context-related and multi-perspective concept called `trust' among supply-chain members. A total of 117 responses of questionnaires were collected and analyzed and a number of key findings emerged. The field is relatively “new” one for supply chain management as consensus is lacking on the definition of the term. Factors loading on Rational Trust emphasize to focus on three factors and the proposed name for the key factors of Rational Trust are Economics of relationships, Dynamic Capabilities of Partners & Technology Adoption.