An Investigation of Justice, Conflict, and Moderating Effects of Supplier Autonomy and Cultural Distance in Buyer–Supplier Relationships

Abstract

In this paper, we examine the relationship between justice dimensions (procedural, distributive, and interactional justice) and conflict (task and relationship) in buyer–supplier relationships. We develop a nuanced understanding of how justice dimensions reduce task and relationship conflict in buyer–supplier relationships. In addition, we hypothesize that task conflict mediates the relationship between justice dimensions and relationship conflict. We also hypothesize that the effect of justice dimensions on conflict is contingent on the buyer–supplier cultural distance and the degree of autonomy provided to the supplier. Based on primary data on buyer–supplier relationships, our results show that procedural and interactional justice dimensions are more important than distributive fairness. Furthermore, managers can reduce the relationship conflict by mitigating task conflict, which has not been asserted in the buyer–supplier relationship literature. Our results suggest that supplier autonomy and cultural distance, as contextual variables, influence the relationship between interactional justice and conflict dimensions, but they do not influence the relationship between procedural or distributive justice and conflict dimensions. We discuss the relative importance and role of the three justice dimensions in mitigating relational conflicts in buyer–supplier relationships, and implications of our results to theory as well as practice.