바로가기메뉴

본문 바로가기 주메뉴 바로가기

logo

Determinants of Sustainability Performance in Pharmaceutical Distribution Industry

The Journal of Distribution Science / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2020, v.18 no.12, pp.91-100
https://doi.org/https://doi.org/10.15722/jds.18.12.202012.91
KIM, Yong-Ha
KIM, Young-Taek

Abstract

Purpose: The objective of this study is to deepen our understanding of the key factors that determine sustainability in terms of suppliers based on the transactions between suppliers (pharmaceutical companies) and buyers (medical institutions) in the pharmaceutical distribution industry. Research design, data and methodology: Transaction justice factors were derived from three main components: distributive, procedural and interpersonal, five hypotheses were set up. The respondents from the data collected through an online survey are sales staff of pharmaceutical companies. Total of 319 questionnaires are collected and used to verify the hypotheses through the SPSS 22.0 and AMOS 22.0 programs. Results: Justice of transactions perceived by the salesperson of pharmaceutical companies was found to have a significant effect on the relationship commitment. Among them, procedural justice was found to have greatest relative influences. In addition, relationship commitment was found to have a significant effect on sustainability performance. Thus, all hypotheses were adopted. Conclusions: The results of this study, can be used as basic data for the guidelines for fair trade between pharmaceutical companies and medical institutions. In addition, it is expected that the study will have significance in that it examined sustainability through transactions with buyers from the viewpoint of suppliers.

keywords
Justice, Relationship Commitment, Sustainability Performance, Pharmaceutical Distribution

Reference

1.

Adams, J. S. (1963). Towards an understanding of inequity. The Journal of Abnormal and Social Psychology, 67(5), 422-436. https://doi.org/10.1037/h0040968

2.

Al-Ma’aitah, N. (2018). The role of justice in achieving long-term buyer-supplier relationship: the case of Jordanian manufacturing sector. International Review of Management and Marketing, 8(2), 109-117.

3.

An, J. E., Suh, C. J., & Lee, S. K. (2020). The Effect of Perception Justice and Sales Competency on Relationship Trust and Performance: Focusing on Pharmaceutical Companies. Journal of Korea Service Management Society, 21(2), 133-156.https://doi.org/10.15706/jksms.2020.21.2.006

4.

Archer, N. P., Maheshwari, B., Kumar, V., & Kumar, U. (2006). Optimizing success in supply chain partnerships. Journal of Enterprise Information Management, 19(3), 276-280. https://doi.org/10.1108/17410390610658469

5.

Awan, U., Kraslawski, A., & Huiskonen, J. (2018). Buyer-supplier relationship on social sustainability: Moderation analysis of cultural intelligence. Cogent Business & Management, 5(1), 1-20. https://doi.org/10.1080/23311975. 2018.1429346

6.

Bagozzi, R. P. & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the academy of marketing science, 16(1), 74-94. https://doi.org/10.1007/BF02723327

7.

Beugré, C. D., & Acar, W. (2008). Offshoring and cross‐border interorganizational relationships: A justice model. Decision Sciences, 39(3), 445-468. https://doi.org/10.1111/j.1540-5915.2008.00199.x

8.

Bies, R. J., & Moag, J. S. (1986). Interactional communication criteria of fairness. Research in organizational behavior, 9, 289-319.

9.

Crane, A., & Matten, D. (2004). Questioning the domain of the business ethics curriculum. Journal of Business Ethics, 54(4),357-369. https://doi.org/10.1007/s10551-004-1825-x

10.

Cucchiella, F., Koh, L., Walker, H., & Jones, N. (2012). Sustainable supply chain management across the UK private sector. Supply Chain Management: An International Journal, 17(1), 15-28. https://doi.org/10.1108/13598541211212177

11.

Duffy, R., Fearne, A., Hornibrook, S., Hutchinson, K., & Reid, A.(2013). Engaging suppliers in CRM: The role of justice in buyer–supplier relationships. International Journal of Information Management, 33(1), 20-27. https://doi.org/10.1016/j.ijinfomgt.2012.04.005

12.

Dwyer, F. R., Schurr, P. H., & Oh, S. J. (1987). Developing BuyerSeller Relationships. Journal of Marketing Research, 51, 11-27. https://doi.org/10.1177/002224298705100202

13.

Dyer, J. H., & Singh, H. (1998). The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Academy of management review, 23(4), 660-679.https://doi.org/10.5465/amr.1998.1255632

14.

Ellis, K. M., Reus, T. H., & Lamont, B. T. (2009). The effects of procedural and informational justice in the integration of related acquisitions. Strategic Management Journal, 30(2), 137-161. https://doi.org/10.1002/smj.728

15.

Folger, R. (1977). Distributive and procedural justice: Combined impact of voice and improvement on experienced inequity. Journal of personality and social psychology, 35(2), 108-119. https://doi.org/10.1037/0022-3514.35.2.108

16.

Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, 18(1), 39-50. https://doi.org/10.1177/002224378101800104

17.

Griffith, D. A., Harvey, M. G., & Lusch, R. F. (2006). Social exchange in supply chain relationships: The resulting benefits of procedural and distributive justice. Journal of operations management, 24(2), 85-98. https://doi.org/10.1016/j.jom.2005. 03.003

18.

Huo, B., Wang, Z., & Tian, Y. (2016). The impact of justice on collaborative and opportunistic behaviors in supply chain relationships. International Journal of Production Economics,177, 12-23. https://doi.org/10.1016/j.ijpe.2016.04.006

19.

Jokela, P., & Söderman, A. (2017). Re-examining the link between fairness and commitment in buyer-supplier relationships. Journal of Purchasing and Supply Management, 23(4), 268-279. https://doi.org/10.1016/j.pursup.2017.08.003

20.

Jung, C. W. (2019). Blue Ocean of Job Creation, Pharmaceutical Industry. KPMBA Brief, 19, 69-72.

21.

Kang, B., & Jindal, R. P. (2015). Opportunism in buyer–seller relationships: Some unexplored antecedents. Journal of Business Research, 68(3), 735-742. https://doi.org/10.1016/j.jbusres.2014.07.009

22.

Kaur, H., & Singh, S. P. (2018). Environmentally sustainable stochastic procurement model. Management of Environmental Quality: An International Journal, 29(3), 472-498.https://doi.org/10.1108/MEQ-04-2017-0039

23.

Kaynak, R., Sert, T., Sert, G., & Akyuz, B. (2015). Supply chain unethical behaviors and continuity of relationship: Using the PLS approach for testing moderation effects of interorganizational justice. International Journal of Production Economics, 162, 83-91. https://doi.org/10.1016/j.ijpe.2015.01. 010

24.

Kim, K. T., Hui, L., & Lee, J. S. (2016). Impacts of buyer-supplier cooperation on trust and performance: Moderating role of governance mechanism. The Journal of Distribution Science,14(8), 113-121. https://doi.org/10.15722/jds.14.8.201608.113

25.

Kocmanova, A., & Simberova, I. (2012). Modelling of corporate governance performance indicators. Engineering Economics, 23(5), 485-495. https://doi.org/10.5755/j01.ee.23.5.2865

26.

Korea Pharmaceutical and Bio-Pharma Manufacturers Association, http://www.kpbma.or.kr/

27.

Korean Research-based Pharmaceutical Industry Association, https://www.krpia.or.kr/

28.

Kumar, N., Scheer, L. K., & Steenkamp, J. B. E. (1995). The effects of supplier fairness on vulnerable resellers. Journal of marketing research, 32(1), 54-65. https://doi.org/10.1177/002224379503200107

29.

Lassar, W. M., & Zinn, W. (1995). Informal channel relationships in logistics. Journal of Business Logistics, 16(1), 81-106.

30.

Lee, D. (2015). The Effect of CSR Willingness and Sustainable SCM Enablers on Sustainable SCM Performance. Journal of the Korean Production and Operations Management Society,26(2), 123-147. https://doi.org/10.21131/kopoms.26.2.201505. 123

31.

Lee, S. Y. (2016). Responsible supply chain management in the Asian context: the effects on relationship commitment and supplier performance. Asia Pacific Business Review, 22(2),325-342. https://doi.org/10.1080/13602381.2015.1070012

32.

Leventhal, G. S. (1980). What should be done with equity theory?. In Social exchange. Springer, Boston, MA.

33.

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.https://doi.org/10.1016/j.jom.2012.03.003

34.

Luo, Y. (2007). The independent and interactive roles of procedural, distributive, and interactional justice in strategic alliances. Academy of Management Journal, 50(3), 644-664.https://doi.org/10.5465/amj.2007.25526452

35.

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.https://doi.org/10.1016/j.jbusres.2014.08.011

36.

Moorman, C., Zaltman, G., & Deshpande, R. (1992). Relationships between providers and users of market research:The dynamics of trust within and between organizations. Journal of marketing research, 29(3), 314-328.https://doi.org/10.1177/002224379202900303

37.

Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3), 20-38. https://doi.org/10.1177/002224299405800302

38.

Nunnally, J. (1978). Psychometric Theory(2nd), McGraw-Hill, New York.

39.

Palmatier, R.W., Dant, R.P. and Grewal, D. (2007). A Comparative Longitudinal Analysis of Theoretical Perspectives of Inter Organizational Relationship Performance. Journal of Marketing, 71(Oct), 172-194. https://doi.org/10.1509/jmkg.71.4.172

40.

Park, H. S., Kim, J. H., & Yu, J. P. (2018). Effect of Environmental Dynamics on the Business Performance of Franchise Distribution Industry. The Journal of Distribution Science, 16(3), 59-68.http://dx.doi.org/10.15722/jds.16.3.201803.59

41.

Sahin, F., & Robinson, E. P. (2002). Flow coordination and information sharing in supply chains: review, implications, and directions for future research. Decision sciences, 33(4),505-536. https://doi.org/10.1111/j.1540-5915.2002.tb01654.x

42.

Seuring, S., & Müller, M. (2008). From a literature review to a conceptual framework for sustainable supply chain management. Journal of cleaner production, 16(15), 1699-1710. https://doi.org/10.1016/j.jclepro.2008.04.020

43.

Sohn, Y. S., Seung, K. Y., Seo, S. Y., & Kim, S. E. (2013). The mediating role of commitment in healthcare B2B marketing. The Service Industries Journal, 33(13-14), 1381-1401.https://doi.org/10.1080/02642069.2013.763930

44.

Suh, C. J., & Lee, S. K. (2017). A Study on the Effects of Relationship Quality in Healthcare Supply Chain: Focusing on Hospital-Pharmaceutical Firm Relationship. Korean Journal of Logistics, 25(4), 77-94.https://doi.org/10.15735/kls.2017.25.4.006

45.

Suh, C. J., Lee, S. K., & Song, I. B. (2018). The Effects of Ethical Management on Relationship Quality, Customer Orientation and Financial Performance: Focusing on Pharmaceutical Companies. Journal of Korea Service Management Society,19(2), 77-97. https://doi.org/10.15706/jksms.2018.19.2.004

46.

Syed, M. W., Zu Li, J., Junaid, M., & Ziaullah, M. (2020). Relationship between human resource management practices, relationship commitment and sustainable performance. Green Finance, 2(3), 227-242. https://doi.org/10.3934/GF.2020013

47.

Touboulic, A., Chicksand, D., & Walker, H. (2014). Managing imbalanced supply chain relationships for sustainability: A power perspective. Decision Sciences, 45(4), 577-619. https://doi.org/10.1111/deci.12087

48.

Tuten, T. L., & Urban, D. J. (2001). An expanded model of business-to-business partnership formation and success. Industrial marketing management, 30(2), 149-164. https://doi.org/10.1016/S0019-8501(00)00140-1

49.

Yang, H. C., Hong, G. H., & Lee, Y. C. (2010). Impacts of Relational characteristics between Optical Franchisor and Franchisees on Relational Performance. The Journal of Distribution Science, 8(2), 23-32.

50.

Yim, D. S. (2017). The relationship among justice recognition, brand asset value, trust, relation commitment and long-term orientation. The Journal of Distribution Science, 15(1), 95-104.http://dx.doi.org/10.15722/jds.15.1.201701.95

51.

Ziaullah, M., Feng, Y., Akhter, S. N., Atsu, A. B., & Wasim, S. M.(2015). Exploring the relationship between justice and supply chain process integration through linkage of trust-an empirical study of pakistan. Research in Business and Management, 2(1), 89-101. http://dx.doi.org/10.5296/rbm. v2i1.6825

The Journal of Distribution Science