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Engaging suppliers in CRM: The role of justice in buyer–supplier relationships

Duffy, Rachel, Fearne, Andrew, Hornibrook, Sue, Hutchinson, Karise and Reid, Andrea (2013) Engaging suppliers in CRM: The role of justice in buyer–supplier relationships. International Journal of Information Management, 33 (1). pp. 20-27. [Journal article]

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DOI: 10.1016/j.ijinfomgt.2012.04.005


Given the crucial role of suppliers in collaborative supply chains, it is surprising that little attention has been paid to the nature and management of supplier relationships in the implementation of a retailer's Customer Relationship Management (CRM) strategy. To address this gap in the extant literature, the theory of organizational justice is used to explore the extent to which perceived fairness in buyer–supplier relationships supports or inhibits supplier engagement with the CRM process. The rationale is that suppliers who feel fairly treated by key retail customers are more likely to invest resources in the acquisition and use of data central to the retailer's CRM strategy. By empirically testing a conceptual model linking downstream CRM to upstream SRM, the results provide evidence to indicate that customer data use is significantly influenced by perceptions of fairness, particularly with respect to the distribution of rewards, and the transparency of decision-making processes. As a key criticism of CRM centers upon the failure of organizations to exploit the full potential of customer data, the results highlight the usefulness of understanding the relational linkages between buyers and suppliers and the consequential behavior of suppliers in terms of engagement with customer data vital to the success of retailers’ CRM strategies.

Item Type:Journal article
Faculties and Schools:Ulster Business School > Department of Business and Enterprise
Ulster Business School
Research Institutes and Groups:Business and Management Research Institute
ID Code:27739
Deposited By: Professor Paul Humphreys
Deposited On:05 Nov 2013 09:11
Last Modified:05 Nov 2013 09:11

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