When is Physical Interaction Important for Trust and Transparency Among B2B Negotiators? The Role of Mutual Dependence

Abstract: This study examines whether the frequency of physical interactions in buyer-supplier relationships is associated with greater trust and transparency (information sharing) and whether this relationship is moderated by the partners’ mutual dependence. To test these hypotheses, we conducted a survey study among 154 buyers and suppliers. We asked participants to report on a specific business partner, providing information on the frequency of physical interactions, the level of mutual dependence, trust, and knowledge sharing. We found support for our hypotheses that the frequency of physical interactions is positively associated with trust in the partner and information sharing. These relations appear stronger among business partners whose relationship is characterized by low levels of mutual dependence. Based on our findings we recommend managers should balance in-person and digital communication based on the relationship structure with their business partners. While digital tools improve efficiency, in-person meetings remain vital for trust, collaboration, and long-term value, even considering financial and environmental costs.

Keywords: trust; negotiation; transparency; B2B; buyers; suppliers; physical interaction