Consumers demand transparency, but is it rewarded?
Transparent supply chains boost consumer trust—if the results are positive. But what if they aren't? A new paper by Kühne Logistics University (KLU), in collaboration with the University of Tennessee and Tilburg University, published in the Journal of Business Logistics, reaches a surprising conclusion. The researchers advise companies: It's better to publish mixed results than none at all.
A new study by researchers from Kühne Logistics University, the University of Tennessee, and Tilburg University suggests that companies should publish mixed results of supply chain transparency, rather than none or only positive results. The research, published in the Journal of Business Logistics, reveals that while transparency can boost consumer trust, publishing only positive information or none at all may not be as effective.
The researchers advise companies to be more confident in disclosing mixed results, as this nuanced portrayal of compliance with corporate due diligence is perceived as more trustworthy. While negative information may lower perceived fairness, it is offset by a positive effect, leading to increased trust and positive word-of-mouth. The study's findings highlight the importance of providing a realistic picture of the supply chain process, even when it includes shortcomings.
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