An Examination of Trust Repair upon Supply Chain Disruptions: The Role of Organizational Justice

This project examines the repair of buyers’ perceptions of suppliers’ trustworthiness upon supply chain disruptions. Recovery from supply chain disruptions is critical for inter-organizational relationship management. Based on justice theory, we propose that trustworthiness (the ability, benevolence, and integrity of a trustee) can be repaired through installing distributive, procedural, and interactional justice between the parties. In addition, based on causal attribution theory, we propose that the effectiveness of employing justice approaches for trust repair is based on the severity of the supply chain disruptions caused by suppliers and market uncertainty. We will empirically test our propositions through a sample of manufacturing firms in China. The results of this project carry important theoretical and managerial implications for how supply chain members can repair trust. This project will help buyers understand supplier defections and provide researchers with a foundation for future systematic investigation on trust repair.