Interactional Justice, Informational Quality, and Sustainable Supply Chain Management: A Comparison of Domestic and Multinational Pharmaceutical Companies

Abstract

As the business environment gradually intensifies, interest in building efficient supply chain relationships is growing. The basic principle of supply chain management (SCM) is to enhance efficiency by maintaining sustainable relationships between companies in the supply chain. This study classifies interactional justice into interpersonal justice and informational justice and examines their effects on informational quality and sustainable SCM by comparing Korean pharmaceutical companies with multinationals. The study used a theoretical structural model to investigate the causal impact of interactional justice on informational quality and sustainable SCM. The results indicated that interpersonal justice showed a significant positive relationship with informational justice. Further, interpersonal justice and informational justice had a significant positive effect on informational quality in Korean pharmaceutical companies but not in multinationals. Finally, informational quality had a positive effect on sustainable SCM performance regardless of the company’s nationality. This study is important because it identified the influence of interactional justice on informational quality and sustainable SCM by comparing Korean with multinational pharmaceutical companies. The study also highlighted the necessity of interpersonal justice and informational justice in the pharmaceutical industry. Lastly, the study suggests a useful method for the literature to investigate pharmaceutical companies.