Abstract
Using a framework based on interorganizational fairness theory, I describe the current state of interorganizational fair governance in China from three perspectives: academia, business, and government. After a brief review of relevant theoretical literature, I review empirical academic research on interorganizational fair governance published by Chinese scholars. Then, I present findings from a preliminary research investigation of interorganizational fair governance practices of the top 100 Chinese enterprises and the top 100 Chinese retail enterprises. Specifically, I describe the vertical relationships between enterprises and upstream suppliers as well as downstream distributors and the role of fair governance in horizontal alliances and competition. I also explain how retail slotting allowances (i.e., passage fees) currently threaten fairness in the entire retail marketing channel in China. I summarize legislative and regulatory actions taken by the government in response to calls for interorganizational fair governance. I conclude by offering some recommendations for future research and some final reflections on the current and future state of interorganizational fair governance in China.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
Based on 2014 rankings published by the China Chain Store & Franchise Association
- 2.
Accessed September 4, 2015: http://www.sinopecgroup.com/group/shzr/ygfz1/yxpy/
- 3.
- 4.
Collected on September 5, 2015, from GOME’s official website: http://www.igome.com/article_list/index
- 5.
References
Bloom, P. N., Gundlach, G. T., & Cannon, J. P. (2000). Slotting allowances and fees: Schools of thought and the views of practicing mangers. Journal of Marketing, 64(2), 92–108.
Colquitt, J. A., Conlon, D. E., Wesson, M. J., Porter, C. O. L. H., & Ng, K. Y. (2001). Justice at the millennium: A meta-analysis review of 25 years of organizational justice research. Journal of Applied Psychology, 86(3), 425–445.
Dong, C., & Zhang, C. (2007). Relationship between channel power structure and slotting allowances: Case study of the Chinese household electrical appliances channels. China Industrial Economy, 23(10), 119–126.
Dwyer, F. R., Schurr, P. H. & Oh, S. (1987). Developing Buyer-Seller Relationships. Journal of Marketing, 51(2), 11–27.
Frazier, G. L. (1983). Interorganizational Exchange Behavior in Marketing Channels: A Broadened Perspective. Journal of Marketing, 47(4), 68–78.
Greenberg, J. (1990). Organizational justice: Yesterday, today, and tomorrow. Journal of Management, 16(2), 399–432.
Heide, J. B. (1994). Interorganizational governance in marketing channels. Journal of Marketing, 58(1), 71–85.
Heide, J. B., & Wathne, K. H. (2006). Friends, businesspeople, and relationship roles: A conceptual framework and a research agenda. Journal of Marketing, 70(3), 90–103.
Hu, Z., Liu, J., Zhao, P., & Yang, Z. (2007). Impact of distributor trust by perceived manufacturer justice: A case study of channel relations in the Chinese cell phone industry. Journal of Marketing Science, 3(1), 81–91.
Husted, B. W., & Folger, R. (2004). Fairness and transaction costs: The contribution of organizational justice theory to an integrative model of economic organization. Organization Science, 15(6), 719–729.
Kumar, N., Scheer, L. K., & Steenkamp, J.-B. E. M. (1995). The effects of supplier fairness on vulnerable resellers. Journal of Marketing Research, 32(1), 54–65.
Li, L.-Y. (2010). Encouraging extra-role behavior in a channel context: The role of economic-, social-, and justice-based sharedness mechanisms. Industrial Marketing Management, 39(2), 195–201.
Li, F., Hu, S., & Zhan, Z. (2013). The mechanism of formation of retail passage fees: Multi-format and multi-case research based on the Chinese market context. China Industrial Economy, 3, 124–136.
Liu, Y., Huang, Y., Luo, Y., & Zhao, Y. (2012). How does justice matter in achieving buyer-supplier relationship performance? Journal of Operations Management, 30(5), 355–367.
Luo, Y. (2005). How important are shared perceptions of procedural justice in cooperative alliances? Academy of Management Journal, 48(4), 695–709.
Luo, Y. (2007). The independent and interactive roles of procedural, distributive, and interactional justice in strategic alliance. Academy of Management Journal, 50(3), 644–664.
Luo, Y. (2008). Procedural fairness and interfirm cooperation in strategic alliance. Strategic Management Journal, 29(1), 27–46.
Luo, Y., Liu, Y., Yang, Q., Maksimov, V., & Hou, J. (2015). Improving performance and reducing cost in buyer–supplier relationships: The role of justice in curtailing opportunism. Journal of Business Research, 68(3), 607–615.
Poppo, L., & Zhou, K. Z. (2014). Managing contracts for fairness in buyer-supplier exchanges. Strategic Management Journal, 35(10), 1508–1527.
Qian, L., & Ren, X. (2010). Supplier’s control mechanism, distributor’s attitude and behavior and collaborative performance: An empirical study on 4S stores. Management Review, 22(8), 57–67.
Ring, P. S., & Van de Ven, A. H. (1994). Developmental processes of cooperative interorganizational relationships. Academy of Management Review, 19(1), 90–118.
Samaha, S., Palmatier, R. W., & Dant, R. P. (2011). Poisoning relationships: Perceived unfairness in channels of distribution. Journal of Marketing, 75(3), 99–117.
Scheer, L. K., Kumar, N., & Steenkamp, J.-B. E. M. (2003). Reactions to perceived inequity in U.S. and Dutch interorganizational relationships. Academy of Management Journal, 46(3), 303–316.
Shou, Z., Zhu, W., Su, C., & Zhou, N. (2011). How the control over the behavior in marketing channels affects the relations in trust: A case study based on the role theory and the justice theory. Management World, 26(10), 58–69.
Wang, Q., Craighead, C. W., & Li, J. J. (2014). Justice served: Mitigating damaged trust stemming from supply chain disruptions. Journal of Operations Management, 32, 374–386.
Zhang, C. (2006). Interregional expansion of national and international retailers in Chinese market: A comparative study based on the store distribution of 58 chain companies. Economics of Finance and Trade, 26(8), 59–65.
Zhang, Z. (2008). The Chinese value of distributive justice. In G. Yang, G. Huang, & Z. Yang (Eds.), The Chinese indigenous psychology (Vol. 2, pp. 833–873). Chongqing: Chongqing University Press.
Zhang, C., & Dong, C. (2010). Has channel power shifted? An empirical study on Chinese consumption product channel based on SCP paradigm. Chinese Retail Research, 1(2), 66–82.
Zhang, C., Du, N., Xia, C., & Zhou, N. (2014). Channel member’s exit and voice: The role of perceived fairness and long-term orientation. Journal of Management Science, 27(2), 108–117.
Zhuang, G. (2012). Choice of channel governance strategies based on channel organization formats: A new perspective of interfirm governance in marketing channels governance. Nankai Management Review, 15(6), 72–84.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2017 Springer International Publishing Switzerland
About this chapter
Cite this chapter
Zhang, C. (2017). Interorganizational Fair Governance in China. In: Jiang, Q., Qian, L., Ding, M. (eds) Fair Development in China. Perspectives on Sustainable Growth. Springer, Cham. https://doi.org/10.1007/978-3-319-43663-0_10
Download citation
DOI: https://doi.org/10.1007/978-3-319-43663-0_10
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-43661-6
Online ISBN: 978-3-319-43663-0
eBook Packages: Business and ManagementBusiness and Management (R0)