Exploring the association between fairness and organisational outcomes in supply chain relationships

Abstract

Purpose -The purpose of this paper is to present a conceptual model of fairness applicable to buyer-supplier relationships within supply chains in order to generate a new line of empirical research within supply chain management (SCM). Design/methodology/approach -The paper presents a literature review on organisational justice drawn from the psychology discipline. Fairness within collaborative and long-term buyer-supplier relationships is discussed and conceptualised. A number of propositions are presented applicable to buyer supplier relationships within supply chains, given that successful implementation of supply chain strategies depends upon the actions and reactions of individuals across functions, both within and between organisations. Findings -Some of the assumptions made in the traditional intra-organisational setting are challenged. A conceptual model of fairness applicable to buyer-supplier relationships is developed, and supply chain moderating factors that may impact on perceptions of justice, and possible desired organisational as well as supply chain outcomes are identified. Originality/value -Specifically, a contribution is made to the gaps in the SCM literature on the social implications of SCM by developing a behavioural theoretical approach. Solutions to operational measurement difficulties are offered, together with implications for practising managers to consider when managing supply chain relationships. Opportunities and difficulties for future empirical research are also identified.

The current situation and future conceptualization of power in industrial markets

“…Personalized accounts of how business exchanges operate are uncommon; where there is inequity, exchange partners are less inclined to talk about it, perhaps for fear of sanctions. Such investigations thus are rare, with minimal academic considerations of inequity in business exchange (e.g., Hornibrook, Fearne, & Lazzarin, 2009). Palmer, Simmons, Robinson, and Fearne adopt an ethnographic approach to understand the daily operations of power for grocery retailers, bringing together suppliers and buyers from dominant retailer organizations in workshops.…”

Inter-organizational unfairness in the construction industry

“…To address this deficiency, the aim of this paper is to use theories of organizational justice to investigate: the level of unfairness in the construction industry; what forms it takes; and how it varies across different project roles, types and values. As Simons and Robertson (2003) and Hornibrook et al (2009) indicate in their analysis of the effects of justice on organizational outcomes, such research not only will help to explain and address unfairness in the construction sector but could also contribute to significantly improved organizational productivity and efficiency.…”

The Roles of Procedural and Distributive Justice in Logistics Outsourcing Relationships

“…For that to happen, a climate of trust and cooperation is key; trust and cooperation are likely to be facilitated if partners have a common understanding of the procedures involved in the management of the relationship and perceive the sharing of outcomes to be fair (Jambulingam et al 2009). Despite suggestions that the roles and impacts of justice can be widely investigated in the context of supply chain management, to date, limited research has been conducted (Griffith et al 2006;Hornibrook et al 2009). …”