Trust and knowledge creation: how the dynamics of trust and absorptive capacity may affect supply chain management development projects

A case study is presented from a project where five companies representing manufacturer, wholesaler and retailer roles tried to establish supply chain management practices. The researchers had the role of project managers and facilitators, thereby acting as action researchers. Although devised and conducted in a way that seemed adequate to the participants, the project was only partly successful. Our analysis of the case shows that dynamics of institutional trust and distrust caused obstructions to the mutual learning capacities of the participating companies. If the project management had been able to attend to and manage these dynamics in a more reflective manner, the project may have been more successful. This hypothesis is substantiated through quantitative analysis of accountancy data from one participating company as well as qualitative analysis of transcripts from project meetings.