Do supplier perceptions of buyer fairness lead to supplier sales growth? |
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| Institution: | 1. Leeds University Business School, University of Leeds, Leeds LS2 9JT, United Kingdom;2. Business Ecosystem Research Group, School of Business and Management, Queen Mary University of London, London E1 4NS, United Kingdom;3. mIMP Research Group, Manchester Business School, University of Manchester, Booth Street West, Manchester M15 6PB, United Kingdom;1. University of Trieste, Department of Economics, Management, Mathematics, and Statistics “Bruno de Finetti”, Via Valerio 4/1, 34127 Trieste, Italy;2. Turku Institute for Advanced Studies, Turku School of Economics, Department of Marketing 20014, University of Turku, Finland;1. Boston College;2. University Navarra;3. University of Valencia;1. Lancaster University, Management School, Lancaster LA1 4YW, UK;2. Business Ecosystems Research Group, School of Business and Management, Queen Mary University of London, London E1 4NS, UK;1. Department of Marketing, College of Business and Behavioral Science, Clemson University, 273 Sirrine Hall, Box 341325, Clemson, SC 29634-1325, USA;2. Department of Marketing, The University of Alabama, 126 Alston Hall, Tuscaloosa, AL 35487, USA |
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| Abstract: | Despite the growing number of studies focusing on fairness perceptions in buyer–supplier relationships, the pertinent literature mostly focuses on understanding the buyers' perceptions of fairness. In this study, we argue that sellers' perceptions of the fairness of the buyer are equally important but often overlooked. Moreover, existing research fails to provide empirical evidence for examining the long-term effects of fairness on sales growth. We address these gaps by reporting the results of a longitudinal study based on both primary data collected from automotive suppliers in 2009, and objective sales data for these suppliers from an automotive manufacturer over a three-year period after 2009. We employ a latent growth curve model, which reveals that only interactional and distributive fairness have a positive and significant effect on both trust and commitment. Our analysis further reveals that the positive effect of trust and commitment on sales growth is smaller as the supplier's level of dependency on the car manufacturer increases. When the buyer's perception of dependence is considered, these effects are reversed. Several managerial implications of these findings are provided. |
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