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