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Book part
Publication date: 10 June 2015

Russell Cropanzano, Marion Fortin and Jessica F. Kirk

Justice rules are standards that serve as criteria for formulating fairness judgments. Though justice rules play a role in the organizational justice literature, they have…

Abstract

Justice rules are standards that serve as criteria for formulating fairness judgments. Though justice rules play a role in the organizational justice literature, they have seldom been the subject of analysis in their own right. To address this limitation, we first consider three meta-theoretical dualities that are highlighted by justice rules – the distinction between justice versus fairness, indirect versus direct measurement, and normative versus descriptive paradigms. Second, we review existing justice rules and organize them into four types of justice: distributive (e.g., equity, equality), procedural (e.g., voice, consistent treatment), interpersonal (e.g., politeness, respectfulness), and informational (e.g., candor, timeliness). We also emphasize emergent rules that have not received sufficient research attention. Third, we consider various computation models purporting to explain how justice rules are assessed and aggregated to form fairness judgments. Fourth and last, we conclude by reviewing research that enriches our understanding of justice rules by showing how they are cognitively processed. We observe that there are a number of influences on fairness judgments, and situations exist in which individuals do not systematically consider justice rules.

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Research in Personnel and Human Resources Management
Type: Book
ISBN: 978-1-78560-016-6

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Article
Publication date: 20 November 2009

Thani Jambulingam, Ravi Kathuria and John R. Nevin

The purpose of this paper is to understand how fairness garners loyalty by breeding trust in the pharmaceutical wholesaler‐pharmacy relationship. Specifically, the paper…

Abstract

Purpose

The purpose of this paper is to understand how fairness garners loyalty by breeding trust in the pharmaceutical wholesaler‐pharmacy relationship. Specifically, the paper seeks to understand if the two dimensions of fairness – procedural and distributive – contribute differently in fostering the two types of trust – credibility and benevolence. The paper further aims to examine how the two dimensions of trust mediate the fairness‐loyalty relationship.

Design/methodology/approach

Data from 156 retail pharmacies on their relationship with the pharmaceutical wholesalers are used to test the hypotheses. The mediation models are tested using the Barron and Kenny procedure.

Findings

The findings of this paper show the importance of both procedural and distributive aspects of fairness on the part of pharmaceutical wholesalers as perceived by the pharmacies. Each aspect of fairness plays a more prominent role for fostering a particular type of trust, which, in turn, leads to loyalty.

Research limitations/implications

Future research may investigate the antecedents to fairness to unearth additional insights as to how organizations can manage their customers' perceptions of fairness and thereby enhance their trust and loyalty.

Practical implications

Pharmaceutical wholesale is a competitive business to retain pharmacies by building loyalty thus balancing pharmacies' dependence on the more powerful pharmaceutical manufacturers in the pharmaceutical supply chain. Given the intense competition, the wholesaler that does a superior job in creating a competitive advantage leveraging fairness to engender trust will get to benefit in recruiting and retaining more pharmacies.

Originality/value

This paper contributes to the fairness‐trust‐loyalty stream of literature by examining the mediation effects at the sub‐dimension level of the fairness and trust constructs. The paper also has practical implications, especially given the low gross margins for pharmaceutical wholesalers and the growing threat of direct distribution of pharmaceuticals or disintermediation by the manufacturers using third party logistics companies, such as united parcel service. The paper shows how wholesalers may be able to build loyalty with the pharmacies by signaling fairness and fostering trust.

Details

International Journal of Pharmaceutical and Healthcare Marketing, vol. 3 no. 4
Type: Research Article
ISSN: 1750-6123

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Article
Publication date: 26 April 2011

Hsi‐An Shih and Ely Susanto

This study aims to investigate the negative impacts of innovative work behavior (IWB) on conflict with coworkers and turnover intention. It also aims to test the…

Abstract

Purpose

This study aims to investigate the negative impacts of innovative work behavior (IWB) on conflict with coworkers and turnover intention. It also aims to test the moderating effect of perceived distributive fairness on these relationships.

Design/methodology/approach

A total of 460 employees who were working in production and marketing teams at manufacturing and pharmaceutical companies in Indonesia were asked to complete the questionnaire. The final sample consisted of 135 sets of paired data of supervisor and subordinate. The multiple hierarchical regressions were used to test the developed hypotheses.

Findings

Findings of this study indicated that innovative work behavior had a positive and significant relationship with conflict with coworkers and turnover intention respectively. Moreover, the findings also found that perceived distributive fairness negatively moderated the relationship between IWB and both conflict with coworkers and turnover intention.

Research limitations/implications

The study involved relatively a small sample selected from employees who were working in production and marketing teams in manufacturing and pharmaceutical companies in Indonesia. Future research should consider extending the sample to other industries and locations to test the arguments as well as exploring other contextual variables to buffer the negative impacts of IWB on conflict with coworkers and turnover intention

Originality/value

Scholars and practitioners alike agree that IWB helps organizations to gain and sustain competitive advantage. However, IWB may also create problems for organizations and employees that previous studies have left unexplored. This study examines such negative impacts, along with how to alleviate them.

Details

International Journal of Conflict Management, vol. 22 no. 2
Type: Research Article
ISSN: 1044-4068

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Article
Publication date: 12 October 2020

Jee Eun Lee and Sang Suk Lee

The purpose of this study is to examine the effects of fairness on relationship quality and re-contract intention in the foodservice franchise industry and this paper…

Abstract

Purpose

The purpose of this study is to examine the effects of fairness on relationship quality and re-contract intention in the foodservice franchise industry and this paper intends to delineate the implications of enhancing the mutual relationship between the franchisor and the franchisee in the future domestic foodservice franchise system.

Design/methodology/approach

To prevent the lack of reliability and to pursue the internal consistency of the measurement model, this study adopted SPSS (Ver.20.0) and derived Cronbach’s alpha. Additionally, this study conducted a confirmatory factor analysis by using AMOS (Ver.20.0) program to assess the unidimensionality of measurements. Finally, structural equation modeling was used to test the hypothesized research framework.

Findings

The results showed that distributive fairness and informational fairness increase the relationship quality, which franchisees perceive under the franchise system. Among the relationship quality factor, only the trust has a considerable impact on the (performance) re-contract intention. The effect of fairness on relationship quality does not show a statistically considerable difference between the two groups (global franchise vs domestic franchise). However, in terms of a global franchise, distributive fairness has a significant impact on relationship quality, whereas domestic franchise, distributive fairness directly affects performance (re-contract intention).

Research limitations/implications

This study provides readers with an effect of fairness in the franchise system. Results obtained in this study are useful for understanding the fairness and relationship quality in the franchise system.

Practical implications

Recently, as the foodservice franchise market is experiencing significant growth, government and franchise-related agencies are making considerable effort to improve the relationship between the franchisor and the franchisee and to offer a better system and policy concerning the protection of consumers. Government and franchise agencies should develop an adequate policy to improve the relationship between the franchisor and the franchisee by breaking away from the imprudent support.

Originality/value

This study investigates whether fairness in the franchise system has a significant effect on the relationship quality and the performance (re-contract intention) and provides implication about the mutual growth between franchisor and franchisee to the potential food service franchise in Korea.

Details

Management Research Review, vol. 44 no. 3
Type: Research Article
ISSN: 2040-8269

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Book part
Publication date: 9 December 2020

Michael L. Roberts and Theresa L. Roberts

This chapter examines how public attitudes and judgments about tax fairness reflect distributive justice rules about proportionality/contributions, needs, and equality;…

Abstract

This chapter examines how public attitudes and judgments about tax fairness reflect distributive justice rules about proportionality/contributions, needs, and equality; fairness issues that influence voluntary tax compliance (Hofmann, Hoelzl, & Kirchler, 2008; Spicer & Lundstedt, 1976). Most public polls and some prior research indicate the general public considers progressive income tax rates as fairer than flat tax rates, a reflection of the Needs rule of distributive justice theory; our 1,138 participants respond similarly. However, two-thirds of our politically representative sample of the American public actually assign “fair shares” of income taxes consistently with fairness-as-proportionality above an exempt amount of income, consistent with the Contributions rule of Equity Theory. We argue experimental assignments of fair shares of income taxes can best be understood as a combination of the Needs rule, applied by exempting incomes below the poverty line from income taxation (via current standard deductions) and taxing incomes above this exempt amount at a single tax rate (i.e., a flat-rate tax) consistent with the Proportionality/Contributions rule. Viewed in combination, these two distributive justice rules explain the tax fairness judgments of 89% of our sample and indicate surprising general agreement about what constitutes a fair share of income taxes that should be paid by US citizens from the 5th percentile to the 95th percentile of the income distribution. The joint application of these fairness rules indicates how seemingly competing, partisan distributive justice concerns can inform our understanding of social attitudes about tax fairness across income classes.

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Article
Publication date: 14 November 2016

Sumrina Razzaq, Muhammad Zahid Iqbal, Malik Ikramullah and Jan-Willem van Prooijen

The purpose of this paper is to investigate the occurrence of rating distortions under raters’ different mood conditions and at different levels of interpersonal affect of…

Abstract

Purpose

The purpose of this paper is to investigate the occurrence of rating distortions under raters’ different mood conditions and at different levels of interpersonal affect of raters towards ratees, and further its association with ratees’ perceptions of distributive and interpersonal fairness.

Design/methodology/approach

For the scenario-based experiment, the study recruited 110 undergraduate students as participants. Of them, 22 raters appraised the video-taped buyer-seller negotiation performance of 88 ratees. Repeated measures analysis was employed to analyse data.

Findings

Results revealed that under different mood conditions (pleasant and sad) and at different levels of interpersonal affect towards ratees (high and low), raters distorted ratings (inflated and deflated, respectively). These rating distortions shaped ratees fairness perceptions in such a way that ratees who received inflated ratings due to raters’ pleasant mood and high interpersonal affect perceived more distributive and interpersonal fairness than ratees who received deflated ratings due to raters’ sad mood and low interpersonal affect.

Originality/value

The paper is a step towards integrating the affect infusion model with distributive and interpersonal fairness theory. This integration can be of value for enhancing our understanding of how rater-centric rating errors take place, which subsequently shape ratees’ fairness perceptions.

Details

Career Development International, vol. 21 no. 7
Type: Research Article
ISSN: 1362-0436

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Content available
Article
Publication date: 16 October 2017

Rita Faullant, Johann Fueller and Katja Hutter

Companies are discovering the power of crowdsourcing as a source of new ideas for products and services. It is assumed that the personal engagement and the continuous…

Abstract

Purpose

Companies are discovering the power of crowdsourcing as a source of new ideas for products and services. It is assumed that the personal engagement and the continuous involvement with a company’s products or services over a period of several weeks positively affect participants’ loyalty intentions toward the host companies. The research leads the authors to challenge this assumption. In addition to mere participation in crowdsourcing initiatives, the authors argue that perceptions of fairness will explain changes in customer relationship-related consequences such as loyalty, perceived innovativeness and product interest. The paper aims to discuss these issues.

Design/methodology/approach

The authors analyzed a real-life crowdsourcing contest launched by a leading lighting manufacturer and investigated the impact of two fairness dimensions (distributive and procedural) on participants’ future behavioral and attitudinal intentions (n=121). The analysis was performed with SEM.

Findings

The results suggest that fairness perceptions are significantly related to evoked product interest, perceived innovativeness and loyalty intentions. The analysis reveals that the influence of the fairness dimensions is asymmetric: while distributive fairness can be considered as a basic factor that must be fulfilled in order to avoid negative behavioral consequences, procedural fairness instead is an excitement factor that causes truly positive behavioral consequences.

Research limitations/implications

The results are particularly relevant for companies launching a crowdsourcing competition under their own brand name, and for broadcasting platforms. For companies with no relations to end-users, these findings may not be as relevant.

Practical implications

Organizers of crowdsourcing contests should be aware that such initiatives can be a double-edged sword. Fair Play is a must to gain the positive effects from crowdsourcing initiatives for both new product development and the customer relationship. For companies lacking the capabilities to manage crowdsourcing initiatives professionally it is advisable to rely on intermediary broadcasting platforms.

Originality/value

The research is the first to investigate systematically the consequences of fairness perceptions in a real-life crowdsourcing idea contest. The authors demonstrate the asymmetric nature of fairness perceptions on three different outcome variables that are important for the customer relationship.

Details

Management Decision, vol. 55 no. 9
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 6 August 2018

Jing Zhang and Mingfei Du

Value appropriation and value creation are two sides of the same coin. How B2B seller’s value appropriation impacts customer relationship performance still remains an…

Abstract

Purpose

Value appropriation and value creation are two sides of the same coin. How B2B seller’s value appropriation impacts customer relationship performance still remains an under-researched topic. This paper aims to probe into this question in the context of Chinese B2B markets.

Design/methodology/approach

This study identifies two kinds of value appropriation, namely, competitive and non-competitive and then examines their impacts upon customer relationship performance, as well as the moderating roles of distributive fairness and procedural fairness, based on questionnaire survey among 273 Chinese B2B firms.

Findings

The authors find that seller’s competitive value appropriation has negative impact upon customer relationship performance, and this link is positively moderated by customer-perceived distributive fairness. Besides, non-competitive value appropriation by the seller has significant and positive impact upon customer relationship performance, and this link is positively moderated by customer-perceived procedural fairness.

Originality/value

The paper contributes greatly to literature of value management and industrial buyer–seller relationship. Managerial implications are provided for B2B companies operating in Chinese market to tackle with the tradeoff between appropriating sufficient value and retaining harmonious relationship with customers.

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Article
Publication date: 17 February 2012

Yen‐Ting Chen and Tsung‐Yu Chou

Like any product purchases, the success of online shopping depends largely on user satisfaction and other factors that further affect customers' intentions to continue…

Abstract

Purpose

Like any product purchases, the success of online shopping depends largely on user satisfaction and other factors that further affect customers' intentions to continue shopping online (continuance intentions). This study seeks to integrate fairness theory with the trust concept to construct a model for investigating consumers' continuance intentions toward online shopping.

Design/methodology/approach

An online survey collected data from 226 users with online shopping experience to empirically validate the hypothesised model.

Findings

The results indicate that distributive fairness and interactional fairness exert significant positive effects on customers' satisfaction and trust in vendors. Satisfaction is a strong predictor of the continuance intentions of consumers. However the fact that the relationship between trust in vendors and consumers' continuance intentions is insignificant offers insight into trust: consumers continue shopping online with certain levels of misgiving.

Originality/value –

The findings suggest that a user's trust in an online vendor can be enhanced by increasing fairness, particularly distributive fairness and interactional fairness. This also implies that an online user's satisfaction and trust are not just related to products: therefore vendors should put effort into the pre‐ and post‐sale experiences.

Details

Online Information Review, vol. 36 no. 1
Type: Research Article
ISSN: 1468-4527

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Article
Publication date: 18 April 2008

A. Blair Staley and Nace R. Magner

Empirical evidence from governmental budgeting and related organizational decision‐making contexts suggests that program heads will be less likely to leave their…

Abstract

Purpose

Empirical evidence from governmental budgeting and related organizational decision‐making contexts suggests that program heads will be less likely to leave their governmental unit when they feel that governmental budgeting is fair. The purpose of this study is to examine relationships between three forms of fairness in governmental budgeting – distributive fairness, procedural fairness, and interactional fairness – and program heads' intention to leave the governmental unit.

Design/methodology/approach

Questionnaire data were gathered from 87 US federal government program heads with budget responsibility and analyzed with multiple regression.

Findings

Interactional budgetary fairness had a significant and positive unique relationship with intent to leave after controlling for the other two forms of budgetary fairness and three demographic variables. Neither distributive budgetary fairness nor procedural budgetary fairness had a significant unique relationship with intent to leave.

Practical implications

Budgetary decision makers and budget staff in governmental units can reduce program heads' intention to leave the governmental unit by promoting interactional budgetary fairness through steps such as treating the program heads with kindness and respect during budgeting and providing clear and adequate explanations for budgetary decisions.

Originality/value

This study is the first to examine relationships between the three forms of organizational decision‐making fairness and turnover intention in a governmental budgeting context.

Details

Managerial Auditing Journal, vol. 23 no. 4
Type: Research Article
ISSN: 0268-6902

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