How buyer-side procedural fairness asymmetry erodes supplier performance: a dyadic and temporal changes perspective

Purpose Despite the critical role of procedural fairness in supply chain relationships, research on how differences in procedural fairness perceptions between buyers and suppliers shape exchange relationships remains limited. Grounded in transaction cost economics, this study investigates how buyer-side procedural fairness asymmetry affects supplier performance over time through changes in supplier negotiation costs. It further examines how institutional and relational contexts shape the effect of buyer-side procedural fairness asymmetry. Design/methodology/approach Using survey data from 224 matched buyer–supplier dyads in Chinese manufacturing firms, the research employs 2-stage regression analyses to test the proposed hypotheses. Findings The results show that buyer-side procedural fairness asymmetry reduces supplier performance. This detrimental effect is partially mediated by an increase in supplier negotiation costs, indicating that perceived fairness asymmetry directly burdens suppliers with higher transaction costs, which subsequently impairs their performance. Moreover, government intervention strengthens the positive effect of buyer-side procedural fairness asymmetry on changes in supplier negotiation costs, and flexibility also amplifies this relationship. Originality/value By adopting a dyadic and temporal changes perspective, this study advances inter-organizational fairness research by identifying procedural fairness asymmetry as a distinct governance condition. It also deepens understanding of governance effectiveness in buyer–supplier relationships and advances supply chain relationship management research.