Abstract

The pharmaceutical industry is deeply related to the health and life of patients. However, there are negative perceptions towards the bad practices like ‘rebate’ and the government has been trying to regulate it, it hasn’t been working out as expected yet. Therefore, this research addresses to analyze the impact of (the sales rep’s) procedural justice on the performance. It will find the correlation between fairness, competence and relationship trust as well. To test the hypotheses empirically, we conducted a survey of multinational and domestic pharmaceutical companies’ sales representatives. And I have done an actual analysis total of 207 questionnaires using a SEM. Consequently, it shows that the justice(procedural justice, distributive justice) of the sales reps has influenced positively on the relationship trust and performance. In addition, it turned out that competence of the sales rep plays a positive role on the performance as well. Thus, the results could suggest implications as follows. It requires management strategy that creates an environment where employees can do fair activities themselves through morals and ethics training. Also companies need to invest, develop, and conduct training competency programs in order to build the capabilities of sales representatives since it has the biggest impact on performance. This provides a logical and strong support for promoting ethical management of pharmaceutical companies.

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