Trust as relational governance in long-term supplier–buyer relationships: Antecedents and performance outcomes in MSME supply chains

Micro, small, and medium-sized enterprises (MSMEs) dominate Indonesia's teak furniture industry and operate within relationship-intensive supply chains, where long-term buyer–supplier relationships support market continuity, quality consistency, and production stability. Although trust is widely recognized as a key relational factor, its role as a relational governance mechanism and the explanatory value of alternative trust conceptualizations remain insufficiently examined. This study compares two models: Model 1, which conceptualizes trust as unidimensional, and Model 2, which conceptualizes trust through credibility and benevolence. Data from 144 teak furniture MSMEs, including 30 pilot respondents, were analysed using PLS-SEM. The results show that Model 1 provides a more parsimonious representation of trust, although the evidence does not establish universal superiority over Model 2. Trust was strongly and positively associated with long-term orientation (β = 0.625, p < 0.01) and was positively associated with formal information exchange (β = 0.175, p < 0.01), economic satisfaction (β = 0.175, p < 0.01), transaction-specific investments (β = 0.149, p < 0.01), and reputation (β = 0.139, p < 0.05), while coercive power was negatively associated with trust (β = −0.242, p < 0.01). Coercive power also positively moderated the trust–long-term orientation relationship (β = 0.067, p = 0.085), contrary to the hypothesized direction. Overall, Trust represents an important relational governance mechanism associated with long-term buyer–supplier orientation.