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Organizational Behavior and Theory

Chapman University

2009

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Full-Text Articles in Business

How Fairness Garners Loyalty In The Pharmaceutical Supply Chain: Role Of Trust In The Wholesaler-Pharmacy Relationship, Thani Jambulingam, Ravi Kathuria, John R. Nevin Jan 2009

How Fairness Garners Loyalty In The Pharmaceutical Supply Chain: Role Of Trust In The Wholesaler-Pharmacy Relationship, Thani Jambulingam, Ravi Kathuria, John R. Nevin

Business Faculty Articles and Research

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 …