Impact of Fair Treatment of Supplier and Procurement Policies and Knowledge Sharing on the Firm’s Supply Chain Performance in Manufacturing Companies of Pakistan

Abstract

The rising interest of buyers in maintain long term relationship with their supplier in supply chain organizations to enhance the firm’s performance has led the focus of new research in justice in the buyer’s polices for supplier. Researchers had initiated an inquiry into the influence of justice on the buyer-supplier relationship. Despite of this increasing interest in studying the impact of fairness fewer studies have been carried out to examine the impact of knowledge sharing and trust on the relationship of buyer and supplier in context of fairness. Moreover, the real means of fairness are lessen defined in the previous studies.  Therefore, to address this gap, the present study broadens the impact of fairness on the buyer and supplier relationship by defining it through procedural justice and distributive justice while assessing the mediating impact knowledge sharing on the relationship of fairness and firm’s supply chain performance along with the impact of trust to moderate the knowledge sharing based on perceived fairness in the relationship. To test the framework, Smart PLS was employed on the 250 valid responses. The results of the current research reveals that perceived fairness between buyer and supplier positively impacts the firm’s performance that was enhanced with the moderating role of knowledge sharing. Further it has also be seen that trust enhances the knowledge sharing based on the perceived fairness in the relationship.