Organisational justice climate, social capital and firm performance

Abstract

Purpose The purpose of this paper is to develop a conceptual framework in order to understand the impact of organizational justice climate on firm performance. Design/methodology/approach This paper reviews the literature on organizational justice and social capital and theorizes their relationship with firm performance. The underlying argument of this paper is that a climate of organizational justice influences firm performance indirectly through its influence on social capital. Findings The paper suggests ways through which different types of justice climate – distributive, procedural, interactional – are related to different dimensions of social capital. This paper also extends the findings of organizational justice research from an individual level to organizational level by proposing an indirect relationship with firm performance. Originality/value This paper is unique, as no research to date has proposed a conceptual framework integrating organizational justice climate, social capital and firm performance.