Fairness and Transaction Costs: The Contribution of Organizational Justice Theory to an Integrative Model of Economic Organization

References

• Adams J. S., Berkowitz L. Inequity in social exchange. Advances in Experimental Social Psychology (1965) 2(Academic Press, New York) 267–299Crossref, Google Scholar
• Alchian A., Demsetz H. Production, information costs, and economic organization. Amer. Econom. Rev. (1972) 62:777–795Google Scholar
• Artz K. W., Brush T. H. Asset specificity, uncertainty and relational norms: An examination of coordination costs in collaborative strategic alliances. J. Econom. Behavior Organ. (2000) 41:337–362Crossref, Google Scholar
• Bazerman M. H. Norms of distributive justice in interest arbitration. Indust. Labor Relations Rev. (1985) 38:558–570Crossref, Google Scholar
• Beckett-Camarata E., Camarata M. R., Barker R. T. Integrating internal and external customer relationships through relationship management: A strategic response to a changing global environment. J. Bus. Res. (1998) 41:71–81Crossref, Google Scholar
• Bies R. J., Moag J. S., Lewicki R. J., Sheppard B. H., Bazerman M. H. Interactional justice: Communication criteria of fairness. Research on Negotiations in Organizations (1986) 1(JAI Press, Greenwich, CT) 43–55Google Scholar
• Bies R. J., Shapiro D. L. Voice and justification: Their influence on procedural fairness judgments. Acad. Management J. (1988) 31:676–685Crossref, Google Scholar
• Binmore K., Shaked A., Sutton J. Testing noncooperative bargaining theory: A preliminary study. Amer. Econom. Rev. (1985) 75:1178–1180Google Scholar
• Brett J. M., Goldberg S. B., Ury W. L. Designing systems for resolving disputes in organizations. Amer. Psych. (1990) 45(February):162–170Crossref, Google Scholar
• Brockner J., Siegel P., Kramer R. M., Tyler T. R. Understanding the interaction between procedural and distributive justice: The role of trust. Trust in Organizations: Frontiers of Theory and Research (1996) (Sage Publications, Thousand Oaks, CA) 169–178Crossref, Google Scholar
• Bromiley P., Cummings L. L., Bies R., Sheppard B., Lewicki R. Transactions costs in organizations with trust. Research on Negotiations in Organizations (1995) 5(JAI, Greenwich, CT) 219–247Google Scholar
• Cameron L. A. Raising the stakes in the ultimatum game: Experimental evidence from Indonesia. Econom. Inquiry (1999) 37:47–59Crossref, Google Scholar
• Chiles T. H., McMackin J. F. Integrating variable risk preferences, trust, and transaction cost economics. Acad. Management Rev. (1996) 21:73–99Crossref, Google Scholar
• Coase R. H. The nature of the firm. Economica N.S. (1988) 4(1937):386–405Reprinted in R. H. Coase, The Firm, the Market, and the Law. The University of Chicago Press, Chicago, ILGoogle Scholar
• Covin T. J., Sightler K. W., Kolenko T. A., Tudor R. K. An investigation of post-acquisition satisfaction with the merger. J. Appl. Behavioral Sci. (1996) 32(2):125–142Crossref, Google Scholar
• Ellickson R.Order Without Law (1991) (Harvard University Press, Cambridge, MA) Crossref, Google Scholar
• Ewing D. W.Justice on the Job: Resolving Grievances in the Nonunion Workplace (1989) (Harvard Business School Press, Boston, MA) Google Scholar
• Farrell D. Exit, voice, loyalty, and neglect as responses to job dissatisfaction: A multidimensional scaling study. Acad. Management J. (1983) 26:596–608Crossref, Google Scholar
• Folger R., Bies R. J. Managerial responsibilities and procedural justice. Employee Responsibilities Rights J. (1989) 2:79–90Crossref, Google Scholar
• Folger R., Cropanzano R.Organizational Justice and Human Resources Management (1998) (Sage, Thousand Oaks, CA) Google Scholar
• Folger R., Greenberg J., Rowland K., Ferris G. Procedural justice: An interpretive analysis of personnel systems. Research in Personnel and Human Resources Management (1985) 3(JAI Press, Greenwich, CT) 141–183Google Scholar
• Folger R., Konovsky M. A. Effects of procedural and distributive justice on reactions to pay raise decisions. Acad. Management J. (1989) 32:115–130Crossref, Google Scholar
• Folger R., Konovsky M. A., Cropanzano R., Staw B. M., Cummings L. L. A due process metaphor for performance appraisal. Research in Organizational behavior (1992) 14(JAI Press, Greenwich, CT) 129–177Google Scholar
• Frank R. H. Are workers paid their marginal products? Amer. Econom. Rev. (1984) 74:549–571Google Scholar
• Frank R. H.Passions Within Reason: The Strategic Role of the Emotions (1988) (Norton, New York) Google Scholar
• Goodman P. S., Friedman A. An examination of Adams' theory of inequity. Admin. Sci. Quart. (1971) 16:271–288Crossref, Google Scholar
• Gouldner A. W. The norm of reciprocity: A preliminary statement. Amer. Sociological Rev. (1960) 25:161–178Crossref, Google Scholar
• Granovetter M. Economic action and social structure: A theory of embeddedness. Amer. J. Sociology (1985) 91:481–510Crossref, Google Scholar
• Greenberg J. Organizational justice: Yesterday, today, and tomorrow. J. Management (1990a) 16:399–432Crossref, Google Scholar
• Greenberg J. Employee theft as a reaction to underpayment inequity: The hidden costs of pay cuts. J. Appl. Psych. (1990b) 75:561–568Crossref, Google Scholar
• Hammond K. R., Adelman L. Science, values, and human judgment. Science (1976) 194:389–396Crossref, Google Scholar
• Hayek F. A. The use of knowledge in society. Amer. Econom. Rev. (1945) 35:519–530Google Scholar
• Hesterly W. S., Liebeskind J., Zenger T. R. Organizational economics: An impending revolution in organization theory? Acad. Management Rev. (1990) 15:402–420Crossref, Google Scholar
• Hirschman A. O.Exit, Voice and Loyalty (1970) (Harvard University Press, Cambridge, MA) Google Scholar
• Hoffman E., McCabe K. A., Smith V. L. Behavioral foundations of reciprocity: Experimental economics and evolutionary psychology. Econom. Inquiry (1998) 36:335–352Crossref, Google Scholar
• Hofstede G.Cultures and Organizations: Software of the Mind (1997) (McGraw Hill, New York) Google Scholar
• Homans G. Social behavior as exchange. Amer. J. Sociology (1958) 62:597–606Crossref, Google Scholar
• Hosmer L. T. Trust: The connecting link between organizational theory and philosophical ethics. Acad. Management Rev. (1995) 20:379–403Crossref, Google Scholar
• Husted B. W. Transaction costs, norms, and social networks: A preliminary study of cooperation in industrial buyer-seller relationships in Mexico and the United States. Bus. Soc. (1994) 31:30–57Crossref, Google Scholar
• Jones G. Transaction costs, property rights, and organizational culture: An exchange perspective. Admin. Sci. Quart. (1983) 28:454–467Crossref, Google Scholar
• Kahneman D., Knetsch J. L., Thaler R. H. Fairness and the assumptions of economics. J. Bus. (1986a) 59:S285–Crossref, Google Scholar
• Kahneman D., Knetsch J. L., Thaler R. H. Fairness as a constraint on profit seeking: Entitlements in the market. Amer. Econom. Rev. (1986b) 76:728–741Google Scholar
• Kim W. C., Mauborgne R. Procedural justice, strategic decision making and the knowledge economy. Strategic Management J. (1998) 19:323–338Crossref, Google Scholar
• Klein B. Transaction cost determinants of “unfair” contractual arrangements. Amer. Econom. Rev. (1980) 70:356–362Google Scholar
• Klein B., Crawford R. A., Alchian A. A. Vertical integration, appropriable rents, and the competitive contracting process. J. Law Econom. (1978) 21:297–326Crossref, Google Scholar
• Konovsky M. A., Pugh D. S. Citizenship behavior and social exchange. Acad. Management J. (1994) 37:656–669Crossref, Google Scholar
• Korsgaard M. A., Schweiger D. M., Sapienza H. J. Building commitment, attachment, and trust in strategic decision-making teams: The role of procedural justice. Acad. Management J. (1995) 38:60–84Crossref, Google Scholar
• Kreps D. M., Alt J., Shepsle K. Corporate culture and economics theory. Perspectives on Positive Political Economy (1990) (Cambridge University Press, Cambridge, U.K) 90–143Crossref, Google Scholar
• Kruglanski A. W. Attributing trustworthiness in supervisor-worker relations. J. Experiment. Soc. Psych. (1970) 6:214–232Crossref, Google Scholar
• Lind E. A., Tyler T. R.The Social Psychology of Procedural Justice (1988) (Plenum Press, New York and London) Crossref, Google Scholar
• Macaulay S. Non-contractual relations in business: A preliminary study. Amer. Sociological Rev. (1963) 28:55–67Crossref, Google Scholar
• Mayer R. C., Davis J. H., Schoorman F. D. An integrative model of organizational trust. Acad. Management Rev. (1995) 20:709–734Crossref, Google Scholar
• Milgrom P., Roberts J. An economic approach to influence activities in organizations. Amer. J. Sociology (1988) 94(Supplement):154–179Crossref, Google Scholar
• Milgrom P., Roberts J. The efficiency of equity in organizational decision processes. Amer. Econom. Rev. (1990a) 80:154–159Google Scholar
• Milgrom P., Roberts J., Alt J. E., Shepsle K. A. Bargaining costs, influence costs, and the organization of economic activity. Perspectives on Positive Political Economy (1990b) (Cambridge University Press, Cambridge, U.K) 57–89Crossref, Google Scholar
• Milgrom P., Roberts J.Economics, Organization & Management (1992) (Prentice Hall, Englewood Cliffs, NJ) Google Scholar
• Mishra A. K., Spreitzer G. M. Explaining how survivors respond to downsizing: The roles of trust, empowerment, justice, and work redesign. Acad. Management Rev. (1998) 23:567–588Crossref, Google Scholar
• Monteverde K., Teece D. Supplier switching costs and vertical integration in the automobile industry. Bell J. Econom. (1982) 13:206–213Crossref, Google Scholar
• Morrison E. W., Robinson S. L. When employees feel betrayed: A model of how psychological contract violation develops. Acad. Management Rev. (1997) 22:226–256Crossref, Google Scholar
• Nee V. Norms and networks in economic and organizational performance. Amer. Econom. Rev. (1998) 88:85–89Google Scholar
• Niehoff B. P., Moorman R. H. Justice as a mediator of the relationship between methods of monitoring and organizational citizenship behavior. Acad. Management J. (1993) 36:527–556Crossref, Google Scholar
• Ouchi W. G. Markets, bureaucracies, and clans. Admin. Sci. Quart. (1980) 25:129–141Crossref, Google Scholar
• Rawls J.A Theory of Justice (1971) (Harvard University Press, Cambridge, MA) Crossref, Google Scholar
• Robins J. A. Organizational economics: Notes on the use of transaction-cost theory in the study of organizations. Admin. Sci. Quart. (1987) 32:68–86Crossref, Google Scholar
• Rousseau D. M.Psychological Contracts in Organizations: Understanding Written and Unwritten Agreements (1995) (Sage Publications, Thousand Oaks, CA) Crossref, Google Scholar
• Rusbult C. E., Farrell D., Rogers G., Mainous A. G. Impact of exchange variables on exit, voice, loyalty, and neglect: An integrative model of responses to declining job satisfaction. Acad. Management J. (1988) 31:599–627Crossref, Google Scholar
• Sapienza H. J., Korsgaard M. A. Procedural justice in entrepreneur-investor relations. Acad. Management J. (1996) 39:544–574Crossref, Google Scholar
• Sheppard B. H., Lewicki R. J., Minton J. W.Organizational Justice: The Search for Fairness in the Workplace (1992) (Lexington Books, New York) Google Scholar
• Simon H.Administration behavior (1961) 2nd ed.(Macmillan, New York) Google Scholar
• Sitkin S. B., Bies R. J., Lewicki R. J., Sheppard B. H. On the positive effect of legalization on trust. Research on Negotiation in Organizations (1995) 5(JAI Press, Greenwich, CT) 185–217Google Scholar
• Sitkin S. B., Bies R. J.The Legalistic Organization (1994) (Sage Publications, Thousand Oaks, CA) Google Scholar
• Sitkin S. B., Roth N. L. Explaining the limited effectiveness of legalistic “remedies” for trust/distrust. Organ. Sci. (1993) 4:367–392Link, Google Scholar
• Sitkin S. B., Stickel D., Kramer R. M., Tyler T. R. The road to hell: The dynamics of distrust in an era of quality. Trust in Organizations: Frontiers of Theory and Research (1996) (Sage Publications, Thousand Oaks, CA) 196–215Crossref, Google Scholar
• Skarlicki D. P., Folger R. Retaliation in the workplace: The roles of distributive, procedural, and interactional justice. J. Appl. Psych. (1997) 82:434–443Crossref, Google Scholar
• Skarlicki D. P., Folger R., Tesluk P. Personality as a moderator in the relationship between fairness and retaliation. Acad. Management J. (1999) 42:100–108Crossref, Google Scholar
• Slonim R., Roth A. E. Learning in high stakes ultimatum games: An experiment in the Slovak Republic. Econometrica (1998) 66:569–596Crossref, Google Scholar
• Strickland L. H. Surveillance and trust. J. Personality (1958) 26:200–215Crossref, Google Scholar
• Thibaut J. W., Walker L.Procedural Justice: A Psychological Analysis (1975) (Erlbaum/Halstead, New York) Google Scholar
• Thibaut J. W., Walker L. A theory of procedure. California Law Rev. (1978) 66:541–566Crossref, Google Scholar
• Thomas K. W., Dunnette M. D., Hough L. M. Conflict and negotiation processes in organizations. Handbook of Industrial and Organizational Psychology (1992) 32nd ed.(Consulting Psychologists Press, Inc., Palo Alto, CA) 651–717Google Scholar
• Thompson J. D., Tuden A., Thompson J. D., Hammond P. B., Hawkes R. W., Junker B. H., Tuden A. Strategies, structures, and process of organizational decision. Comparative Studies in Administration (1959) (University of Pittsburgh Press, Pittsburgh, PA) 195–216Google Scholar
• Turnley W. H., Feldman D. C. The impact of psychological contract violations on exist, voice, loyalty, and neglect. Human Relations (1999) 52:895–922Crossref, Google Scholar
• Tyler T. R., Lind E. A., Zanna M. P. A relational model of authority in groups. Advances in Experimental Social Psychology (1992) 25(Academic Press, San Diego, CA) 115–129Crossref, Google Scholar
• Van de Ven A. H., Walker G. The dynamics of interorganizational coordination. Admin. Sci. Quart. (1984) 29:598–621Crossref, Google Scholar
• Van den Bos K., Lind E. A., Vermunt R., Wilke H. A. M. How do I judge my outcome when I do not know the outcome of others? The psychology of the fair process effect. J. Personality Soc. Psych. (1997) 72:1034–1046Crossref, Google Scholar
• Walker G., Poppo L., Allen T. J., Scott Morton M. S. Profit centers, single-source suppliers, and transaction costs. Information Technology and the Corporation of the 1990s: Research Studies (1994) (Oxford University Press, New York) Google Scholar
• Walker G., Weber D. A transaction cost approach to make versus buy decisions. Admin. Sci. Quart. (1984) 29:373–391Crossref, Google Scholar
• Whitener E. M., Brodt S. E., Korsgaard M. A., Werner J. M. Managers as initiators of trust: An exchange relationship framework for understanding managerial trustworthy behavior. Acad. Management Rev. (1998) 23:513–530Crossref, Google Scholar
• Williamson O. E.Markets and Hierarchies (1975) (Free Press, New York) Google Scholar
• Williamson O. E.The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting (1985) (Free Press, New York) Google Scholar
• Williamson O. E. Comparative economic organization: The analysis of discrete structural alternatives. Admin. Sci. Quart. (1991) 36:269–296Crossref, Google Scholar
• Williamson O. E. Calculativeness, trust, and economic organization. J. Law Econom. (1993) 36:453–486Crossref, Google Scholar
• Williamson O. E.The Mechanisms of Governance (1996) (Oxford University Press, New York) Crossref, Google Scholar
• Williamson O. E. The institutions of governance. Amer. Econom. Rev. (1998) 88:75–79Google Scholar
• Withey M. J., Cooper W. H. Predicting exit, voice, loyalty, and neglect. Admin. Sci. Quart. (1989) 34:521–539Crossref, Google Scholar
• Zaheer A., Venkatraman N. Relational governance as an interorganizational strategy: An empirical test of the role of trust in economic exchange. Strategic Management J. (1995) 16:373–392Crossref, Google Scholar
• Zand D. E. Trust and managerial problem solving. Admin. Sci. Quart. (1972) 17:229–239Crossref, Google Scholar