Determinants of trust and business performance: the case of tuna fishery industry in Semporna, Sabah.
Buyer and seller relationship has been one of prominent issues of discussion especially in an emerging country’s economy. In many ways, both parties interact with each other and over time will create long term relationships which may benefit them. This study focuses on the dynamic of trust between the fisherman (seller) and their buyer and the relationship of trust towards business performance. A total of 98 hook and line tuna fisherman in Mabul Island, Semporna were interviewed using guided-completion questionnaires. The data collected was tested using SmartPLS. The study reveals that communication was the strongest variable influencing trust followed by price satisfaction, interdependency and information sharing. On the same note, cultural similarities and flexibility were found non-significant towards trust. The study also found that trust has no direct influence towards business performance. From a managerial perspective, in order to be successful, channel members need to develop, maintain and seek improvements on communication, information sharing, interdependency and price satisfaction variables within the supply chain. It will be beneficial for members in the value chain to adopt the usage of information technology gadgets to boost communication and information sharing within the industry thus strengthening interdependency among members of the tuna fishing industry. From a theoretical perspective, the findings were consistent with previous researchers who also found that communication, information sharing, interdependency and price satisfaction variables were the main actors in the buyer-seller relationship context specifically on the trust dynamic. .