Balancing the scales of justice: Do perceptions of buyers' justice drive suppliers' social performance?

Abstract

A major challenge for supply chain managers is how to manage sourcing relationships to ensure reliable and predictable actions of distant suppliers. The extant research into sustainable supply chain management (SSCM) has traditionally focused on the transactional and collaboration approaches through which buyers encourage suppliers to act responsibly. However, little effort has been devoted to investigating the factors that underpin and enable effective implementation of these two approaches, or to exploring alternative approaches to help sustain an acceptable level of social performance from suppliers. Building on organisational justice theory, we developed a framework in which we propose that buyers’ justice (i.e. distributive, procedural and interactional) as perceived by suppliers can serve as an alternative and complementary vehicle to the conventional sustainability governance approaches for driving the social justice exhibited by suppliers. The paper sheds new light on an alternative relational approach to help to restrain potentially harmful acts of suppliers. It provides a foundation for new research avenues in the SSCM context and supports more informed decision making by practitioners.