The impact of justice on collaborative and opportunistic behaviors in supply chain relationships

Huo, Baofeng; Wang, Zhiqiang; Tian, Yu

doi:10.1016/j.ijpe.2016.04.006

Cited by 81 publications

(107 citation statements)

References 74 publications

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“…Communication has positive benefits in increasing the perception of equity in relationships (Hulland et al 2012). Communication has also been shown to be closely connected to justice and the decrease of opportunistic actions in buyer-supplier relationships (Huo et al 2016). Informational justice, then, leads to higher levels of relational performance for the buyer-supplier relationship (Liu et al 2012).…”

Section: Buyer Communication -Informational Justicementioning

confidence: 99%

Unintended Consequences: How Suppliers Compensate for Price Concessions and the Role of Organizational Justice in Buyer‐Supplier Relations

Carnovale

Henke

DuHadway

et al. 2019

J of Business Logistics

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“You get what you pay for” is one of life's lessons that predominates in purchasing decisions individuals make in their personal lives. The results of this study suggest this lesson should also prevail among management when price‐related purchasing decisions in businesses are being made. An evaluation of over 1,700 purchasing instances across seven years of a longitudinal panel data set collected from Tier 1 production suppliers to the six major North American automotive Original Equipment Manufacturers (OEMs), Chrysler, Ford, General Motors, Honda, Nissan, and Toyota, found that suppliers compensate for price concessions and price reduction pressure from the OEM in the year following the concession, by reducing product quality, service support, and R&D expenditures associated with goods provided to the OEM. This industry is particularly relevant because it is highly adversarial, yet at the same time reliant on interdependence. The results show that supplier price concessions granted to an OEM led to compensatory supplier behaviors of reduced quality and R&D expenditures toward that OEM. Further, the results suggest that the organizational justice dimensions of distributive justice, procedural justice, interpersonal justice, and informational justice can ameliorate negative supplier compensatory activities. A buyer–supplier relational environment that engenders organizational justice tactics such as open and honest communication with suppliers provides suppliers the expectation of an acceptable return on business over the long term, provides help to suppliers to reduce costs, and builds supplier trust of the OEM had generally positive effects on quality, service, and R&D expenditures. From a management perspective, these results indicate there is a very real risk versus reward issue associated with pressuring suppliers for price reductions.

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Section: Buyer Communication -Informational Justicementioning

confidence: 99%

Unintended Consequences: How Suppliers Compensate for Price Concessions and the Role of Organizational Justice in Buyer‐Supplier Relations

Carnovale

Henke

DuHadway

et al. 2019

J of Business Logistics

View full text Add to dashboard Cite

show abstract

“…Omitting a condition or adding an additional one would likely yield different configurations, perhaps revealing new relationships among the currently included conditions. Although we chose our conditions based on established theory and prior empirical results, future researchers could usefully include alternative conditions, with our post hoc analysis suggesting several possibilities (additional examples: Hawkins et al 2013, Luo et al 2015, Walter et al 2015, Huo et al 2016, Villena and Craighead 2017.…”

Section: Contributions and Opportunities For Future Researchmentioning

confidence: 99%

Avoiding High Opportunism Is Easy, Achieving Low Opportunism Is Not: A QCA Study on Curbing Opportunism in Buyer–Supplier Relationships

Mellewigt

Hoetker

Lütkewitte

2018

Organization Science

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Past research on how opportunism in buyer-supplier relationships can be mitigated remains incomplete and often contradictory. Applying recent advances in qualitative comparative analysis to a sample of 137 buyer-supplier relationships in the German automotive industry, we show that there are multiple equifinal pathways to high and low opportunism. In general, our study shows that it is easier to avoid high opportunism than to consistently achieve low opportunism. On this basis, we offer new insights into countering opportunism for researchers and managers. Achieving low opportunism requires a combination of governance mechanisms, which are generally not interchangeable. In particular, relational governance mechanisms in isolation seem to be more restricted than prior research has suggested but form a powerful synergistic combination with complex contracts. Although formal governance mechanisms lack enforceability, the coordination and monitoring that they provide are critical in both avoiding high opportunism and achieving low opportunism. Performance ambiguity is especially difficult to manage. Overall, our paper shows the power of configurational approaches and encourages the development of new theory that adopts a situational contingency perspective.

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“…Lin (2012) empirically demonstrated that cost-saving innovation is one important type of service innovation. Companies which have collaboration relationships do not need communicate with each other frequently for some details, so as to decrease the transaction cost (Huo et al, 2016). Simatupang and Sridharan's (2005) study also found that highly collaboration practice of supply chain members can get better operating performance and innovation performance.…”

Section: Hypotheses Developmentmentioning

confidence: 92%

Effects of organisational learning on service innovation performance: the mediating effect of supply chain collaboration and the moderating role of interpersonal trust

Li¹,

Jian²,

Li³

et al. 2018

IJSTM

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This paper discusses the relationships between organisational learning and service innovation performance, as well as the mediating role of supply chain collaboration and the moderating role of interpersonal trust. The empirical study shows that: 1) different dimensions of organisational learning have different effects on different dimensions of supply chain collaboration and service innovation performance; 2) supply chain collaboration acts as a mediator between knowledge absorption, knowledge integration, and service innovation performance, but it does not have a mediating effect on the relationship between learning intention and service innovation performance; 3) the positive relationship between knowledge integration and service innovation performance is stronger if the interpersonal trust is higher than it is low. But interpersonal trust does not have a moderating effect on the relationship between the other two dimensions of organisational learning (learning intention and knowledge absorption) and service innovation performance. The segmentation study in this paper gives some theoretical values and insights on research of supply chain collaboration, organisational learning and service innovation performance, and enriches the empirical research of these areas to some extent.

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The impact of justice on collaborative and opportunistic behaviors in supply chain relationships

Cited by 81 publications

References 74 publications

Unintended Consequences: How Suppliers Compensate for Price Concessions and the Role of Organizational Justice in Buyer‐Supplier Relations

Unintended Consequences: How Suppliers Compensate for Price Concessions and the Role of Organizational Justice in Buyer‐Supplier Relations

Avoiding High Opportunism Is Easy, Achieving Low Opportunism Is Not: A QCA Study on Curbing Opportunism in Buyer–Supplier Relationships

Effects of organisational learning on service innovation performance: the mediating effect of supply chain collaboration and the moderating role of interpersonal trust

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