What term refers to partnerships based on trust between companies?

• A. Coordination
• B. Fixed Costs
• C. Value-to-Weight Ratio
• D. Interorganizational Relationships

Answer: (D)

Interorganizational relationships capture partnerships based on trust between companies. They describe ongoing collaboration across organizational boundaries, where firms align goals, share information, and govern their interactions through relational ties rather than just formal contracts. This trust-driven, long-term cooperation lowers uncertainty and transaction costs, enabling joint planning, risk and reward sharing, and coordinated actions across the supply chain. In contrast, coordination is a broader idea about aligning activities and can be more general or internal, while fixed costs are expenses that don’t vary with output and value-to-weight ratio is a logistics metric, not about partnerships.