Paradox of Supply Chain Integration and Firm Performance: The Moderating Roles of Distributive and Procedural Justice*

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.

Automated summary

The study investigates the roles of distributive and procedural justice in supply chain integration (SCI) value creation and appropriation through uncertainty management theory and social exchange theory. Findings suggest that distributive justice negatively moderates the relationship between internal and external integration, while procedural justice positively moderates the relationship between internal and external integration.