The Impact of Distributive Justice on Employee Commitment: The Moderating Role of Procedural Justice in Sri Lanka’S Hotel Industry

Abstract

In Sri Lanka’s high-pressure hospitality industry, employee commitment is critical to operational excellence and long-term competitiveness. Drawing on Social Exchange Theory (SET), this study investigates how distributive justice influences employee commitment, and whether this relationship is moderated by procedural justice. Researchers argue that fair allocation of resources strengthens employee loyalty, but this effect is significantly amplified when employees also perceive fairness in decision-making processes. In such environments, fairness signals mutual respect and trust, fostering deeper emotional attachment to the organization. A cross-sectional survey design was used to collect data from 211 frontline employees in Sri Lanka’s hotel industry, using convenience sampling. Self-administered questionnaires assessed perceptions of distributive justice, procedural justice, and commitment. Correlation and regression analyses were conducted using SPSS. Results revealed a significant positive effect of distributive justice on employee commitment (β = .43, p < .001), and a significant interaction effect with procedural justice (β = .14, p = .02), accounting for an additional variance in commitment (ΔR² = .02). Simple slope analysis showed that the impact of distributive justice on commitment was stronger when procedural justice was high (β = .51, p < .001), compared to when it was low (β = .25, p < .05). These findings underscore the importance of reinforcing both outcome fairness and process fairness to sustain employee commitment in service intensive settings. Managers in the hotel industry should prioritize transparent and inclusive decision-making processes alongside fair reward systems. Training programs should be implemented to educate supervisors and HR personnel on the principles of procedural and distributive justice. While the study contributes to justice literature in collectivist, hierarchical cultures, it is limited by its cross-sectional design and reliance on self-reported measures. Future research should explore longitudinal models and include cultural variables that influence justice perceptions and employee behavior.