The Effects of Justice and Top Management Beliefs and Participation: An Exploratory Study in the Context of Digital Supp

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ORIGINAL PAPER

The Effects of Justice and Top Management Beliefs and Participation: An Exploratory Study in the Context of Digital Supply Chain Management Shaobo Wei1 · Weiling Ke2 · Augustine A. Lado2 · Hefu Liu3 · Kwok Kee Wei4 Received: 16 October 2017 / Accepted: 31 December 2018 © Springer Nature B.V. 2019

Abstract Drawing on justice theory and upper echelons perspective, this study develops and tests an integrative model linking justice to the implementation of IT-enabled supply chain information integration (IeSCII) through the top management. Specifically, the study investigates the effects of the three facets of justice—distributive, procedural, and interactional justice—on the two dimensions of IeSCII (information sharing and collaborative planning), and examines the mediating influences of top management beliefs (TMB) and top management participation (TMP) in these relationships. Using structural equation modeling to analyze data collected from 190 firms in China, the study documents that interactional justice positively affects both TMB and TMP, while procedural justice positively affects TMB (but not TMP) in the IeSCII implementation process. In contrast, distributive justice is not significantly related to either TMB or TMP, but is positively associated with information sharing. The results also show that procedural justice positively affects TMB, which then positively affects TMP in IeSCII. Furthermore, the study finds significant mediating effects of TMB and TMP in the relationship between interactional justice and IeSCII. The theoretical and managerial implications of this study are discussed. Keywords  IT-enabled supply chain information integration · Justice · Upper echelons theory · Top management

* Weiling Ke [email protected] Shaobo Wei [email protected] Augustine A. Lado [email protected] Hefu Liu [email protected] Kwok Kee Wei [email protected] 1



International Institute of Finance, School of Management, University of Science and Technology of China, Hefei 230026, Anhui, People’s Republic of China

2



Reh School of Business, Clarkson University, 8 Clarkson Avenue, PO Box 5790, Potsdam, NY 13699, USA

3

School of Management, University of Science and Technology of China, 96 Jinzhai Road, Hefei, Anhui, People’s Republic of China

4

Department of Information Systems and Analytics, School of Computing, National University of Singapore, 8 College Avenue West, #02‑16 Education Resource Centre, Singapore 138608, Singapore





Abbreviations IeSCII IT-enabled supply chain information integration B2B Business-to-business SCM Supply chain management TMB Top management beliefs TMP Top management participation CFA Confirmative factor analysis

Introduction Justice—the perception of fairness in the allocation of outputs, structuring and implementation of processes, and development and maintenance of value-enhancing exchange relationships—plays a critical role in influencing organizational behavior and action (Luo 2007; Narasimhan et al. 2013; Hudson et al. 2017; Lind et al. 2001).