Justice in inter-organizational relationships: A literature review and future research agenda

Organizational justice has made contributions to the inter-organizational literature by highlighting the effects of justice perceptions on behavioral, attitudinal, and organizational outcomes. However, research on justice perceptions remains scattered and falls short of addressing key elements of justice, and how these elements interact in an inter-organizational context. The lack of understanding calls for a comprehensive review and synthesis of extant studies. After a careful initial review of 375 papers from 1995 to 2018, this paper consolidates 79 papers on organizational justice at an inter-organizational level with respect to theoretical perspectives, methodologies, contexts, and research findings. The thematic and descriptive analyses offer deeper insights into the varying effects of different organizational justice dimensions, and bring forward limitations of current research including a focus on a: single side of the dyad, static view of justice, and single level of analysis. Consequently, the synthesis section, derived from the thematic analysis, draws out three fruitful key themes including: i) justice asymmetry; ii) justice dynamics; and iii) multilevel view of justice. The study positions fruitful research questions for each theme, before presenting the study's limitations and implications

Effectiveness of bonus and penalty incentive contracts in supply chain exchanges: Does national culture matter?

In this study, we investigate the impact of national culture on the effectiveness of bonus and penalty incentive contracts in supply chain exchanges. We conducted laboratory experiments in Canada, China, and South Korea, involving transactional exchanges in which suppliers were presented with either bonus or penalty contracts. Then we compared suppliers’ contract acceptance, level of effort, and shirking across national cultures. Our findings reveal critical cultural influences on contract effectiveness. We show that although acceptance of bonus contracts is comparable across cultures, suppliers from Canada, a national culture considered low in power distance and high in humane orientation, exhibit lower acceptance rates of penalty contracts. In addition, we find evidence that suppliers associated with collectivist cultures exert more effort and shirk less in bonus contracts but these relationships also are more complex. When we compare contract effectiveness across bonus and penalty contracts within a given cultural setting, we find in all three countries greater acceptance of bonus contracts than penalty contracts. Also, after contracts are accepted, bonus contracts are more successful in China because suppliers exert greater effort and shirk less under bonus contracts than penalty contracts. However, in Canada and South Korea, the results of accepted contracts for both penalty and bonus contracts are nearly indistinguishable