An empirical analysis of the role of reference point in justice perception in RD settings in Korea

Abstract

This study examines the relationship of the respondent's reference point with regards to distributive and procedural justice in an R&D setting in Korea. The two characteristics: (1) the rewards difference between Korean public and private R&D institutes (the outcome level at the public R&D institutes is much less than that at the private ones), (2) and the similarity of procedures being used to determine R&D professional's rewards at both types of research institutes, provide an excellent real-life setting for studying the role of reference point. To avoid common method variance, we measured distributive and procedural justice separately. Consistent with the previous experiments, R&D professionals at the public R&D institutes indicated differentiated distributive justice levels according to R&D professionals' reference points. Results also showed that the presence of a social comparison other (suggested reference point) leads the R&D professionals at public R&D institutes to perceive procedural injustice. Finally, several theoretical and managerial implications were discussed. (C) 2000 Elsevier Science B.V. All rights reserved.