The role of fairness in governing supply chain collaborations-a case-study in the Dutch floriculture industry

Supply chain collaboration, in which two or more autonomous firms work together to plan and execute supply chain operations, is becoming ever more important to remain competitive in business. Yet, through collaboration concerns arise about whether the benefits and risks of collaboration are split in an acceptable and fair manner. This research illustrates the role of fairness (organizational justice theory) in creating and appropriating value from supply chain collaborations. We therefore analyze an extensive case study in the Dutch floricultural industry, in which six companies enter a supply chain collaboration. We conclude that fairness considerations are very important for explaining the outcomes of supply chain collaborations. Asymmetries in perceived value appropriation can be offset if the collaboration is deemed fair on distributive, procedural, interpersonal and informational justice dimensions. Firms may improve the success rate of supply chain collaborations if the fairness perceived is considered to be adequate.