Examining the Role of Governance and Organizational Justice on Social Capital Formation in Buyer-Supplier Relationships

¹Ofori Isaah | ²Ackah David | ³Adwapa F

^1&3 School of Business, Kwame Nkrumah University of Technology,

²UNEM International Programme, Universadad Empresarial de Costa Rica

Email: drackah@ipmp.edu.gh

Abstract

Purpose – The aim of this study is to examine the role of governance and organizational justice on social capital formation in buyer-supplier relationship.

Design/methodology/approach – A survey of 116 firms drawn from manufacturing, service, construction and extraction firms was used to test the proposed relationships. Data was obtained using a structure online survey questionnaire developed and shared using Google forms. The data collected was analysed using Partial least squares structural equations model (PLS-SEM).

Findings – The results indicate that organizational justice and governance mechanisms are both positively related to social capital, and social capital is positively related to supply chain performance. The indirect effects estimation revealed that social capital mediates the indirect relationship between governance mechanism and supply chain performance and organizational justice and supply chain performance.

Originality/value – This study has made significant contributions to scholarly knowledge on the antecedents and performance outcomes of social capital formation in buyer-supplier relationships.

Keywords:  Governance Mechanism, Justice Perception, Social Capital in Buyer-Supplier Relationship, Supply chain performance

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