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The impact of justice on collaborative and opportunistic behaviors in supply chain relationships

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  • Huo, Baofeng
  • Wang, Zhiqiang
  • Tian, Yu

Abstract

Based on transaction cost economics and social exchange theory, this study investigates how supplier justice influences buyers' specific investments and communication, which in turn influence the opportunistic behavior of both parties in the supply chain. Data from 240 firms in China are used to test the proposed relationships, and the results suggest that supplier distributive and procedural justice can increase the buyer's specific investment. However, supplier interactional justice only improves the buyer's communication with the supplier. Moreover, supplier opportunism is curbed by buyer communication but increased by the buyer's specific investment. Buyer opportunism is restrained by buyer communication and supplier procedural justice. This study contributes to the literature by investigating the relationships between justice, collaboration, and opportunism in the upstream supply chain. The findings can help managers to maintain their supply chain relationships more effectively.

Suggested Citation

  • Huo, Baofeng & Wang, Zhiqiang & Tian, Yu, 2016. "The impact of justice on collaborative and opportunistic behaviors in supply chain relationships," International Journal of Production Economics, Elsevier, vol. 177(C), pages 12-23.
    • Handle: RePEc:eee:proeco:v:177:y:2016:i:c:p:12-23
    DOI: 10.1016/j.ijpe.2016.04.006
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