IDEAS home Printed from https://ideas.repec.org/a/bla/jscmgt/v58y2022i3p23-46.html
   My bibliography  Save this article

Mending fences in a buyer–supplier relationship: The role of justice in relationship restoration

Author

Listed:
  • Saif Mir
  • Misty Blessley
  • Zach Zacharia
  • John Aloysius

Abstract

While the extant literature has examined causes for buyer–supplier relationship dissolution, the restoration of severed buyer–supplier relationships has been overlooked. Drawing on organizational justice theory, our research develops and tests a model of relationship restoration. We examine how the supplier's restoration tactics—acknowledgment, compensation, and operational transparency, influence the interactional, distributive, and procedural fairness perception, respectively, of the buyer, resulting in relationship restoration. The results are based on a 2 (Acknowledgment – Yes/No) × 2 (Compensation – Yes/No) × 2 (Operational Transparency – Yes/No) vignette‐based study with 390 experienced practitioners. The analysis shows that compensating the buyer and providing transparent procedures for dealing with similar situations in the future, lead to higher distributive fairness and procedural fairness, respectively, resulting in restored relationships. Compensation makes up for past supplier malperformance, whereas operational transparency mitigates future concerns. We also find that restoration tactics based on interactional justice are less effective than those based on procedural and distributive justice. There is only marginal support for the indirect positive effect of acknowledgment on restoration intentions (p

Suggested Citation

  • Saif Mir & Misty Blessley & Zach Zacharia & John Aloysius, 2022. "Mending fences in a buyer–supplier relationship: The role of justice in relationship restoration," Journal of Supply Chain Management, Institute for Supply Management, vol. 58(3), pages 23-46, July.
    • Handle: RePEc:bla:jscmgt:v:58:y:2022:i:3:p:23-46
    DOI: 10.1111/jscm.12272
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jscm.12272
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jscm.12272?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sim B. Sitkin & Nancy L. Roth, 1993. "Explaining the Limited Effectiveness of Legalistic “Remedies” for Trust/Distrust," Organization Science, INFORMS, vol. 4(3), pages 367-392, August.
    2. John Ni & Xiaowen Huang, 2018. "Discovery†to†Recall in the Automotive Industry: A Problem†Solving Perspective on Investigation of Quality Failures," Journal of Supply Chain Management, Institute for Supply Management, vol. 54(2), pages 71-95, April.
    3. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    4. Saif Mir & John A. Aloysius & Stephanie Eckerd, 2017. "Understanding Supplier Switching Behavior: The Role of Psychological Contracts in a Competitive Setting," Journal of Supply Chain Management, Institute for Supply Management, vol. 53(3), pages 3-18, July.
    5. Judith M. Whipple & Robert Wiedmer & Kenneth K. Boyer, 2015. "A Dyadic Investigation of Collaborative Competence, Social Capital, and Performance in Buyer–Supplier Relationships," Journal of Supply Chain Management, Institute for Supply Management, vol. 51(2), pages 3-21, April.
    6. Bianchi, Emily C. & Brockner, Joel, 2012. "In the eyes of the beholder? The role of dispositional trust in judgments of procedural and interactional fairness," Organizational Behavior and Human Decision Processes, Elsevier, vol. 118(1), pages 46-59.
    7. Jeff S. Johnson & Ravipreet S. Sohi, 2016. "Understanding and resolving major contractual breaches in buyer–seller relationships: a grounded theory approach," Journal of the Academy of Marketing Science, Springer, vol. 44(2), pages 185-205, March.
    8. Steven Tadelis & Oliver E.Williamson, 2012. "Transaction Cost Economics [The Handbook of Organizational Economics]," Introductory Chapters,, Princeton University Press.
    9. Fehr, Ryan & Gelfand, Michele J., 2010. "When apologies work: How matching apology components to victims' self-construals facilitates forgiveness," Organizational Behavior and Human Decision Processes, Elsevier, vol. 113(1), pages 37-50, September.
    10. Greenberg, Jerald, 1993. "Stealing in the Name of Justice: Informational and Interpersonal Moderators of Theft Reactions to Underpayment Inequity," Organizational Behavior and Human Decision Processes, Elsevier, vol. 54(1), pages 81-103, February.
    11. Renata P. Brito & Priscila L. S. Miguel, 2017. "Power, Governance, and Value in Collaboration: Differences between Buyer and Supplier Perspectives," Journal of Supply Chain Management, Institute for Supply Management, vol. 53(2), pages 61-87, April.
    12. Lutz Kaufmann & Jens Esslinger & Craig R. Carter, 2018. "Toward Relationship Resilience: Managing Buyer‐Induced Breaches of Psychological Contracts During Joint Buyer–Supplier Projects," Journal of Supply Chain Management, Institute for Supply Management, vol. 54(4), pages 62-85, October.
    13. William P. Bottom & Kevin Gibson & Steven E. Daniels & J. Keith Murnighan, 2002. "When Talk Is Not Cheap: Substantive Penance and Expressions of Intent in Rebuilding Cooperation," Organization Science, INFORMS, vol. 13(5), pages 497-513, October.
    14. Young K. Ro & Hung-Chung Su & Yi-Su Chen, 2016. "A Tale of Two Perspectives on an Impending Supply Disruption," Journal of Supply Chain Management, Institute for Supply Management, vol. 52(1), pages 3-20, January.
    15. Lutz Kaufmann & Joerg Rottenburger & Craig R. Carter & Christian Schlereth, 2018. "Bluffs, Lies, and Consequences: A Reconceptualization of Bluffing in Buyer–Supplier Negotiations," Journal of Supply Chain Management, Institute for Supply Management, vol. 54(2), pages 49-70, April.
    16. Ryan W. Buell & Tami Kim & Chia-Jung Tsay, 2017. "Creating Reciprocal Value Through Operational Transparency," Management Science, INFORMS, vol. 63(6), pages 1673-1695, June.
    17. Whetten, David A., 2009. "An Examination of the Interface between Context and Theory Applied to the Study of Chinese Organizations," Management and Organization Review, Cambridge University Press, vol. 5(1), pages 29-56, March.
    18. Luo, Yadong & Liu, Yi & Yang, Qian & Maksimov, Vladislav & Hou, Jigang, 2015. "Improving performance and reducing cost in buyer–supplier relationships: The role of justice in curtailing opportunism," Journal of Business Research, Elsevier, vol. 68(3), pages 607-615.
    19. Dabholkar, Pratibha A, 1994. "Incorporating Choice into an Attitudinal Framework: Analyzing Models of Mental Comparison Processes," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(1), pages 100-118, June.
    20. Bagozzi, Richard P. & Yi, Youjae & Nassen, Kent D., 1998. "Representation of measurement error in marketing variables: Review of approaches and extension to three-facet designs," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 393-421, November.
    21. Daniel Zizzo, 2010. "Experimenter demand effects in economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 13(1), pages 75-98, March.
    22. Jens Esslinger & Stephanie Eckerd & Lutz Kaufmann & Craig Carter, 2019. "Who Cares? Supplier Reactions to Buyer Claims after Psychological Contract Over‐Fulfillments," Journal of Supply Chain Management, Institute for Supply Management, vol. 55(4), pages 98-128, October.
    23. David Boyd, 2011. "Art and Artifice in Public Apologies," Journal of Business Ethics, Springer, vol. 104(3), pages 299-309, December.
    24. Gérard P. Cachon, 2012. "What Is Interesting in Operations Management?," Manufacturing & Service Operations Management, INFORMS, vol. 14(2), pages 166-169, April.
    25. Desirée Knoppen & Melek Akın Ateş & Alistair Brandon-Jones & Davide Luzzini & Erik van Raaij & Finn Wynstra, 2015. "A comprehensive assessment of measurement equivalence in operations management," International Journal of Production Research, Taylor & Francis Journals, vol. 53(1), pages 166-182, January.
    26. Dirks, Kurt T. & Kim, Peter H. & Ferrin, Donald L. & Cooper, Cecily D., 2011. "Understanding the effects of substantive responses on trust following a transgression," Organizational Behavior and Human Decision Processes, Elsevier, vol. 114(2), pages 87-103, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yuan, Yang & Chu, Zhaofang & Song, Dian & Lai, Fujun, 2024. "Understanding the effects of different responses to supplier-induced disruptions: A configurational approach," International Journal of Production Economics, Elsevier, vol. 270(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aslam, Haris & Wanke, Peter & Khalid, Amna & Roubaud, David & Waseem, Maimoona & Chiappetta Jabbour, Charbel Jose & Grebinevych, Oksana & Lopes de Sousa Jabbour, Ana Beatriz, 2022. "A scenario-based experimental study of buyer supplier relationship commitment in the context of a psychological contract breach: Implications for supply chain management," International Journal of Production Economics, Elsevier, vol. 249(C).
    2. Julia Hartmann & Sebastian Forkmann & Sabine Benoit & Stephan C. Henneberg, 2022. "A consumer perspective on managing the consequences of chain liability," Journal of Supply Chain Management, Institute for Supply Management, vol. 58(4), pages 58-89, October.
    3. Lutz Kaufmann & Jens Esslinger & Craig R. Carter, 2018. "Toward Relationship Resilience: Managing Buyer‐Induced Breaches of Psychological Contracts During Joint Buyer–Supplier Projects," Journal of Supply Chain Management, Institute for Supply Management, vol. 54(4), pages 62-85, October.
    4. Stephanie P. Thomas & Monique L. Ueltschy Murfield & Jacqueline K. Eastman, 2021. "I Wasn’t Expecting That! The Relational Impact of Negotiation Strategy Expectation Violations," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(4), pages 3-25, October.
    5. Stephanie Eckerd & Sean Handley & Fabrice Lumineau, 2022. "Trust violations in buyer–supplier relationships: Spillovers and the contingent role of governance structures," Journal of Supply Chain Management, Institute for Supply Management, vol. 58(3), pages 47-70, July.
    6. Rodney Thomas & Jessica L. Darby & David Dobrzykowski & Remko van Hoek, 2021. "Decomposing Social Sustainability: Signaling Theory Insights into Supplier Selection Decisions," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(4), pages 117-136, October.
    7. Alyson Byrne & Julian Barling & Kathryne Dupré, 2014. "Leader Apologies and Employee and Leader Well-Being," Journal of Business Ethics, Springer, vol. 121(1), pages 91-106, April.
    8. Gasparotto, Lisiane Santos & Pacheco, Natália Araujo & Basso, Kenny & Corte, Vitor Francisco Dalla & Rabello, Gisele Costa & Gallon, Shalimar, 2018. "The role of regulation and financial compensation on trust recovery," Australasian marketing journal, Elsevier, vol. 26(1), pages 10-16.
    9. Kähkönen, T. & Blomqvist, K. & Gillespie, N. & Vanhala, M., 2021. "Employee trust repair: A systematic review of 20 years of empirical research and future research directions," Journal of Business Research, Elsevier, vol. 130(C), pages 98-109.
    10. Anna M. Cianci & Shana M. Clor-Proell & Steven E. Kaplan, 2019. "How Do Investors Respond to Restatements? Repairing Trust Through Managerial Reputation and the Announcement of Corrective Actions," Journal of Business Ethics, Springer, vol. 158(2), pages 297-312, August.
    11. Nagel, Duane M. & Giunipero, Larry & Jung, Hyeyoon & Salas, Jim & Hochstein, Bryan, 2021. "Purchaser perceptions of early phase supplier relationships: The role of similarity and likeability," Journal of Business Research, Elsevier, vol. 128(C), pages 174-186.
    12. Yuan, Yang & Chu, Zhaofang & Song, Dian & Lai, Fujun, 2024. "Understanding the effects of different responses to supplier-induced disruptions: A configurational approach," International Journal of Production Economics, Elsevier, vol. 270(C).
    13. Lutz Kaufmann & Moritz Schreiner & Felix Reimann, 2023. "Narratives in supplier negotiations—The interplay of narrative design elements, structural power, and outcomes," Journal of Supply Chain Management, Institute for Supply Management, vol. 59(1), pages 66-94, January.
    14. Renata P. Brito & Priscila L. S. Miguel, 2017. "Power, Governance, and Value in Collaboration: Differences between Buyer and Supplier Perspectives," Journal of Supply Chain Management, Institute for Supply Management, vol. 53(2), pages 61-87, April.
    15. Verónica H. Villena & Thomas Y. Choi & Elena Revilla, 2021. "Mitigating Mechanisms for the Dark Side of Collaborative Buyer–Supplier Relationships: A Mixed‐Method Study," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(4), pages 86-116, October.
    16. John‐Patrick Paraskevas & Stephanie Eckerd & Curtis M. Grimm, 2022. "Driving cooperative actions: A multimethod study of the temporal duration of unilateral commitments," Journal of Supply Chain Management, Institute for Supply Management, vol. 58(3), pages 3-22, July.
    17. Niels J. Pulles & Raymond P.A. Loohuis, 2020. "Managing Buyer‐Supplier Conflicts: The Effect of Buyer Openness And Directness On A Supplier's Willingness to Adapt," Journal of Supply Chain Management, Institute for Supply Management, vol. 56(4), pages 65-81, October.
    18. Steven L. Grover & Marie-Aude Abid-Dupont & Caroline Manville & Markus C. Hasel, 2019. "Repairing Broken Trust Between Leaders and Followers: How Violation Characteristics Temper Apologies," Journal of Business Ethics, Springer, vol. 155(3), pages 853-870, March.
    19. Davis-Sramek, Beth & Robinson, Jessica L. & Darby, Jessica L. & Thomas, Rodney W., 2020. "Exploring the differential roles of environmental and social sustainability in carrier selection decisions," International Journal of Production Economics, Elsevier, vol. 227(C).
    20. Fracarolli Nunes, Mauro & Lee Park, Camila & Shin, Hyunju, 2021. "Corporate social and environmental irresponsibilities in supply chains, contamination, and damage of intangible resources: A behavioural approach," International Journal of Production Economics, Elsevier, vol. 241(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jscmgt:v:58:y:2022:i:3:p:23-46. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1523-2409 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.