Be proactive or stick to rules? How goodwill and capacity trust influence proactive and template-based information sharing and innovation

Purpose Embedded in the interfirm context between manufacturers and their customers, this study aims to investigate different influences of goodwill trust and capacity trust on two types of information sharing (IS) willingness, the proactive IS and template-based IS. It also probes into the influences of these IS willingness on manufacturers’ product innovation, and the moderating effects of legal environment on the relationships between IS willingness and product innovation. Design/methodology/approach This research conducts the structural equation modeling approach using the survey data from 200 Chinese manufacturers. Findings The authors found that the goodwill trust and capacity trust distinctly influence two types of IS willingness between manufacturers and customers. Specifically, goodwill trust improves proactive IS but generates nonsignificant impact on the template-based IS. Capacity trust enhances template-based IS but exerts nonsignificant influence on the proactive IS. Both these two types of IS willingness promote product innovation, which are positively moderated by the legal environment. Originality/value The authors enrich the dimensional understanding of a less investigated facet of interfirm IS, the IS willingness, uncover the varied roles of goodwill trust and capacity trust in shaping different IS willingness between manufacturers and customers, reveal the positive relationships between IS willingness and product innovation and identify the vital moderating factor, legal environment, within these relationships.