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The effects of supply chain fairness and the buyer’s power sources on the innovation performance of the supplier: a mediating role of social capital accumulation

Kyung-Tae Kim (Department of International Trade and Business, Kangwon National University, Chuncheon, Korea (the Republic of))
Jung Seung Lee (School of Business, Hoseo University – Cheonam Campus, Cheonam, Korea (the Republic of))
Su-Yol Lee (College of Business Administration, Chonnam National University, Gwangju, Korea (the Republic of))

Journal of Business & Industrial Marketing

ISSN: 0885-8624

Article publication date: 7 August 2017

Abstract

Purpose

This study aims to examine the effects of contractual fairness and power sources on the relationship between the buyer and supplier on the innovation performance of the supplier. The mediating role of social capital accumulation between fairness, power and innovation performance was empirically explored.

Design/methodology/approach

Hypotheses were developed to investigate the relationships between supply chain fairness, power sources, social capital and innovation performance. Using structural equation modeling, the hypotheses were tested on data of 209 responses collected from supplying firms in South Korea.

Findings

This study finds that supply chain contractual fairness and referent power use contribute to the innovation performance of the supplier through social capital accumulation between the buyer and supplier. Coercive power, in contrast, impedes the performance improvement of the supplier.

Originality/value

This study provides supply chain practitioners, academics and policy-makers with guidance on how to facilitate and enhance innovation capabilities and performance across the supply chain. By applying social capital theory, this study also provides theoretical underpinning of the literature on supply chain fairness, power and innovation.

Keywords

Acknowledgements

This work was supported by the Kangwon National University under Grant C1008364-01-01; by the National Research Foundation of Korea under Grant 2015S1A5A2A03049811. All authors contributed equally to this paper.

Citation

Kim, K.-T., Lee, J.S. and Lee, S.-Y. (2017), "The effects of supply chain fairness and the buyer’s power sources on the innovation performance of the supplier: a mediating role of social capital accumulation", Journal of Business & Industrial Marketing, Vol. 32 No. 7, pp. 987-997. https://doi.org/10.1108/JBIM-06-2016-0134

Publisher

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Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited