Exploring the effect of justice and buyer-supplier embeddedness on supply chain disruption response: Buyer-supplier dyadic perspectives

Abstract

While buyer–supplier embeddedness (BSE) in supply chain relationships can foster collective action and serve as an effective mechanism for disruption response, most prior research has primarily focused on these dynamics under steady-state conditions; limited attention has been given to the efficacy of BSE when relationships are under distress. Additionally, despite its importance, the role of justice in developing BSE has rarely been explored. This study addresses these gaps by analysing matched-pair data from 239 U.S. manufacturers through group analysis. We specifically focus on the differing perspectives between dyads – an aspect often overlooked in favor of unilateral viewpoints. This study is among the first to provide empirical evidence on how justice dimensions contribute to the development of structural and relational embeddedness and their subsequent impact on disruption response performance. Additionally, our findings indicate that both social and relational embeddedness remain crucial for fostering buyer–supplier cooperation during crises and enhance response performance within the dyad. Moreover, by comparing perspectives between matched buyers and suppliers, we demonstrate that these parties hold different views on the justice embeddedness relationship and its influence on disruption response performance. These insights contribute to a deeper understanding of the dyadic nature of supply chains, highlighting the perspective differences in exchange relationships and their collective actions when under distress.