The Impact of Interactional Justice and Supply-Chain Collaboration on Sustainable SCM Performance: The Case of Multinational Pharmaceutical Firms

Abstract

This study explored the impact of interactional justice on supply-chain collaboration and sustainable supply-chain performance. Accordingly, it classified interactional justice of supply-chain management (SCM) into interpersonal and informational justice, and empirically classified the effects of these subordinate concepts on supply-chain collaboration and sustainable supply-chain performance. To this end, 700 questionnaires were distributed, and 201 final valid responses were used for the statistical analysis which revealed the significant positive influence of interpersonal justice on informational justice. This indicates that courtesy, respect, and proper words are important in the relationship between buyers and sellers. Both interpersonal and informational justice had a significant positive relationship with supply-chain collaboration. The results suggest that a fair-trade environment should be cultivated to encourage and facilitate seller-buyer collaboration. Lastly, supply-chain collaboration had a positive influence on sustainable supply-chain performance. This implies that if justice is not perceived in the seller-buyer relationship, collaboration can be hindered, which negatively impacts corporate performance. These findings also helped to understand the importance of interactional justice and to propose a new relationship between interpersonal and informational justice.