XX Jornadas de Classificação e Análise de Dados
Universidade do Minho, 11-13.Abril.2013
Não preencher
Trustworthiness of a Supplier: a Conceptual Model Based
on Exploratory and Confirmatory Factor Analysis
Patrícia Alves, 1, Pedro Campos2 and Helena Martins3
1
LIAAD– INESC TEC and FEUP, UP;
2
LIAAD- INESC TEC and FEP, UP;
3
Escola Superior de Tecnologias da Saúde, IPP
Abstract
Inter-organizational trust is a fundamental aspect in Economics and Management. In this work,
a theoretical model of trustworthiness composed of fifteen dimensions was tested. Data was
collected from firms in different industrial sectors. Results support part of the originally
proposed theoretical model: exploratory factor analysis procedures revealed a different structure
for the proposed model that was further developed with SEM (Structural Equation Modeling)
procedures, namely confirmatory factor analysis, including second level factor analysis.
Keywords: Trust, exploratory factor analysis, confirmatory factor analysis.
1. Factors that influence the Trustworthiness of a Supplier
Trust is considered essential in all relationships, including Business-to-Business (B2B)
relationships (Pavlou, 2002). Although there is no consensus on a universal definition of trust,
Castelfranchi and Falcone (2010) state that “in its basic sense, trust is just a mental and affective
attitude or disposition towards Y involving two basic types of beliefs: evaluations and
expectations”. The selection of a supplier, being a very important step for the success of the in
B2B relationships, depends not only on its reputation and the costs involved, but also on its
trustworthiness and other factors. The factors we found in the literature (Sako (1998), Aaker
(1991), Rauyruen, Miller, (2007), Chaudhuri and Holbrook (2001), among many others),
resounded in the model expressed in Figure 1.
Programa e resumos
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XX Jornadas de Classificação e Análise de Dados
Universidade do Minho, 11-13.Abril.2013
Fig. 1 – A first conceptual model of Trust based on literature review
2. A Conceptual Model of Trust based on Survey data: Exploratory and
Confirmatory Factor Analysis
A questionnaire was developed, based on literature review for the definition of 31 main
questions, and implemented to explore which dimensions are more important in terms of
trustworthiness of the suppliers in a B2B relationship. The questionnaire was sent to 5000 firms
(via email) of the manufacturing industry and civil construction sectors. Response rate was
about 8% (N=349 firms).
Exploratory factor analysis was performed recurring to SPSS v.19. Principal components
analysis (PCA) was conducted with a Varimax rotation. The analysis yielded 14 components
that explain 67% of the total variance. Some items were dropped due to low communalities and
saturation. With this analysis, 14 components (C1 to C14) could be extracted, leading to a new
trust model. The Kaiser-Myer-Olkin (KMO) value (0.849) showed a very good sampling
adequacy. Reliability was assessed using Cronbach’s alpha. All dimensions yielded values
above .70 (Cortina, 1990) except for C11, C12 and C13 that were thus removed from the model.
Ten of the extracted components corresponded to the originally proposed attributes (Figure 1):
Brand (C2), Monitoring/Accreditation (C4), Cooperative norm (C5), Buyer-Supplier
relationship duration (C6), Past and experience (C7), Specialized production (Specialization,
C8), International presence (C9), Affectivity/Familiarity (C10), Deadlines fulfillment (C13),
and Product’s quality (C14). The other four were named according to their respective
aggregated items: “Cooperation+Integrity+Commitment” (C1), “Legal bonds + Information
made available” (C3), “Market position+Specialized personnel+Benevolence” (C11), and
“Supplier’s size” (C12) (see Table 3). The item quality15r (from C14) was also removed
because it was worsening the component’s contribution for the model. The resulting new model
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XX Jornadas de Classificação e Análise de Dados
Universidade do Minho, 11-13.Abril.2013
(factor structure) is depicted in Figure 2.
Fig. 2 – The resulting new conceptual model of Trust based on survey data
Confirmatory factor analysis was performed recurring to AMOS 20 in order to test the model
obtained with the exploratory procedures. Quality indexes were used in order to quantify the
goodness of fit of the model against reference models. Two absolute indexes (χ2/df and GFI), a
relative index, (CFI), and an information theory based index (RMSEA) were computed. The
model revealed an acceptable goodness of fit (χ2/df = 2.251); in practice, we assume that the
model fit is acceptable if χ2/df is inferior to 5. The Comparative Fit Index, CFI is 0.083, which
indicates some weakness in data adjustment; GFI (Goodness of Fit Index) = 0.80 revealing
some quality in the goodness of fit; RMSEA (Root Mean Square Error of Approximation) =
0.06.
3. Conclusions and further work
This work represents a first step in creating a global model for trustworthiness in business to
business (B2B) relationships. Drawing from literature review, a questionnaire was developed
and 31 items forming 15 theoretical dimensions were found. Results yielded that merely 11 of
these dimensions were consistent with the model, confirmed by an acceptable goodness of fit of
the model. As future work, we aim at conducting the questionnaire in other cultures. A
differential study may be tried in order to detect the influence of the country in the
Programa e resumos
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XX Jornadas de Classificação e Análise de Dados
Universidade do Minho, 11-13.Abril.2013
trustworthiness of a supplier in inter-organizational relationships.
References
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Networks in the Internet of Services, IFIP Advances in Information and Communication
Technology Volume 380, Springer, pp 675-686
Castelfranchi, C., Falcone, R. (2010) Trust theory – A Socio-Cognitive and Computational Model.
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Sako, M., Helper, S. (1998): Determinants of trust in supplier relations: evidence from the
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