Congruence of Business Ethics in Supplier-Buyer Relationships: A Social Identity Approach

Applying social identity theory, We aim to develop a Business Ethics Model (BEM) in Supplier-Buyer Relationships, to describe the relations between supply chain performance and congruence of business ethics perceived by suppliers themselves and corresponding buyers. Data was collected from a large multi-national corporation (MNC) in China branch and its 47 suppliers all over the country. Results show that business ethics is positively related to supply chain performance. More specifically, only when business ethics perceived by suppliers themselves is consistent with buyers´ perception of suppliers´ business ethics, positive relations between business ethics and supply chain performance can been verified. We close by discussing several important research and practical implications for the improvement of supplier-buyer relationships.