Do you reap what you sow? Driving mechanism of supply chain transparency on consumers' indirect reciprocity

Abstract

IntroductionTo maintain sustainable poverty alleviation in the post-pandemic world, China encourages firms to participate in the “Social Commerce Helping Farmers Project.” This study aims to explore the phenomenon of indirect reciprocity between firms, consumers, and farmers in the supply chain. This study explores how supply chain transparency stimulates indirect reciprocity among consumers through competence trust, goodwill trust, and integrity trust. Furthermore, we explore the impact of compassion and the need for social status on the model.MethodsWe fit a partial least square analysis structural equation modeling (PLS-SEM) using data from an online random vignette-based experiment questionnaire survey.ResultsSupply chain transparency of social responsibility practices asymmetrically affects three dimensions of consumer trust by improving perceived information quality. And the three dimensions of trust asymmetrically contribute to indirect reciprocity. Furthermore, compassion has a positive moderating effect on the relationship between perceived information quality and trust. However, the moderating effect of the need for social status on the relationship between the three dimensions of trust and indirect reciprocity differed significantly.DiscussionOur findings indicate that supply chain transparency improves consumer trust, making consumers more responsive and rewarding companies that assist vulnerable groups in their supply chains. Faced with a trust crisis, companies can take different measures to achieve their goals based on each dimension of trust. At the same time, companies need to consider differences in the responses of consumers with different personality traits (e.g., compassion and the need for social status) when revealing their corporate social responsibility practices to consumers.