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Paradox of Supply Chain Integration and Firm Performance: The Moderating Roles of Distributive and Procedural Justice *
Author(s) -
Wei Shaobo,
Yin Jinmei,
Chen Xiayu
Publication year - 2021
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/deci.12438
Subject(s) - appropriation , distributive property , distributive justice , procedural justice , business , value (mathematics) , economic justice , industrial organization , supply chain , supply chain management , microeconomics , psychology , economics , marketing , computer science , epistemology , pure mathematics , philosophy , perception , mathematics , neuroscience , machine learning
The existing literature has increasingly recognized the important role of supply chain integration (SCI) in shaping a firm's superior performance. However, our understanding on how to improve the creation and appropriation of the value from the SCI remains limited. On the basis of uncertainty management theory and social exchange theory, we theorize how distributive and procedural justice play distinctive roles in the SCI value creation and appropriation. Data collected from 113 manufacturing firms in China reveal that distributive justice negatively moderates the relationship between internal and external integration, but positively moderates the relationship between external integration and firm performance. By contrast, procedural justice positively moderates the relationship between internal and external integration, yet insignificantly moderates the relationship between external integration and firm performance. Theoretical contributions and managerial implications are also discussed.