The direct and interactive effects of justice on channel performance

This research investigates the direct and interactive effects of distributive, procedural and interactional justice on relationship performance. Based on social exchange and contingency theories, it aims to resolve the contradictory views on whether justice dimensions interact in a complementary or compensatory manner, providing a comprehensive perspective on the vital role of justice in channel relationships. This research used primary data gathered from 253 Indian general trade consumer durable distributors. The structural equation modeling approach is used to analyze the direct and interactive effects in the research model. This study finds that although the three-justice dimensions improve relationship performance, distributive justice substantially impacts the Indian distribution system. Further, aligned with contingency theory, distributive and procedural justice reveal compensatory (i.e. negative) interaction, while consistent with social exchange theory, distributive and interactional justice exhibit complementary (i.e. positive) interaction. This study provides novel insights into the differential direct and interactive impacts of three justice dimensions on channel performance and recommends context-specific justice strategies for distribution channels in emerging markets. The findings suggest that managers should design channel policies that recognize the importance of justice perceptions and strategically allocate resources to raise the perceptions of a specific or constrained justice dimension to optimize channel performance. Prior studies offered contradicting views on how the three-justice dimensions interact; however, this study resolves these inconsistencies by highlighting the important role of context in shaping the nature of these interactions.