The role of fairness in multi-tier sustainable supply chains

Abstract

Fairness is an important topic that forms part of an organization's sustainability practice and agenda, particularly from a social dimension. However, past studies have rarely considered the role of fairness as a driver of sustainability in multi-tier supply chains. The purpose of this paper is two-fold. First, it examines the impact of fairness perceptions on the relationship between multi-tier supply chain partners. Second, it investigates the dynamics of on-going fairness formations in different stages of the vibrant multi-tier supply chain relationship development process. These gaps have been addressed by reporting the findings of a qualitative research. Primary data was obtained from 18 procurement and supply practitioners of buying firms and their top tier-1 & 2 suppliers. Findings show that fairness perceptions have an impact on collaborative activities between multi-tier supply chain partners. These collaborative responses such as information sharing, joint relationship effort, and dedicated investment can also impact critical aspects of the multi-tier supply chain relationship such as trust, commitment, satisfaction, and conflict resolution. The findings show that multi-tier supply chain partners have different expectations but usually evaluate fairness at the review phase of the relationship development process. These considerations offer theoretical and practical guidance towards the advancement of sustainable multi-tier supply chain relationships.

Supply chain agility as the antecedent to firm sustainability in the post COVID-19

“…Thus, buyer-supplier relationships in the upstream supply chain are enhanced through purchasing social responsibility. Oyedijo et al (2021) argues that fairness is an important component of an organisation's sustainability, and supply chain relationship development plays a critical role in the fairness of sustainable multi-tier supply chain. Besides, Stranieri et al (2019) confirms corporate social responsibility is positively related to supply chain relationships through an augmented vertical coordination and to integrate environmental policy.…”

Multi-tier sustainable supply chain management: a case study of a global food retailer

“…Similarly, within food supply chains, the nature of dependence between organisations and processes varies. Depending on the nature of their product, organisations in such complex networks can be loosely or tightly coupled (Vespignani, 2010; Oyedijo et al , 2021) or vertically coordinated (Hobbs and Young, 2000). Because failure in one part will stymie sustainability implementation efforts while also exposing the MTSC to sustainability risks, the looseness may cause havoc.…”

“…Though power should not be regarded solely in a negative light because it is useful for effective collaboration, synchronisation and goal achievement (Nyaga et al , 2013; Chicksand, 2015; Maglaras et al , 2015). However, it may be difficult to implement SSCM practices in such MTSC relationships as asymmetries in power affect the distribution of outcomes (Hingley, 2005b; Oyedijo et al , 2021).…”

“…The literature, for example, emphasises the effects of partner dependence as an overarching meta-role influencing other constructs such as commitment, trust and other relationship constructs (Mandt, 2018). The concept of dependence has been studied in the context of buyer–supplier relationships (Barnes et al , 2005; Carr et al , 2008; Dabhilkar et al , 2016); however, the multi-tier system may limit partners’ ability to contribute to the achievement of goals, often leaving room for opportunistic actions (Sarkis et al , 2019; Alghababsheh and Gallear, 2021; Oyedijo et al , 2021). The current business environment is also confronted with several challenges.…”

“…These often result in a variety of product-related issues, such as shelf-life constraints, quality and quantity variability, and seasonality. In addition to food shortages, pre- and post-harvest losses, unsustainable land–water–energy use, food waste, food fraud and climate change issues, food supply chains still struggle with other sustainability related challenges (Bhat and Jõudu, 2019; Oyedijo and Akenroye, 2023a).…”