Opportunism, governance structure and relational norms: An interactive perspective (original) (raw)
Related papers
The containment of opportunism in the post formation period of inter-organizational relationships
2011
This paper analyzes the post formation period of IORs on the basis of the assumption that opportunism -particularly between competitors -remains a key problem after the formation and structuring of the IOR. As opportunism negatively influences the performance of the IOR, it will be shown that it is important to understand the factors which foster the willingness to cooperate. The paper combines TCE-and resource-based theory perspectives to explain ex post cooperative behavior of the partners. In so doing, it integrates both governance and resource related issues for a more comprehensive view of the post formation period. It is proposed that there are 4 factors that largely determine whether ex post opportunism will be successfully suppressed in an ongoing relationship: 1) the complexity of the ex ante formal contract, 2) the efforts made by the partners to establish and encourage trust, 3) the degree of sustained resource complementarity, and 4) the level of interdependencies. These factors are shown to be intertwined and to have effects in fostering sustained cooperative behavior and success of the partnership. This theoretical concept will be supported by empirical data gathered in the context of a case study of an IOR between two European airlines.
Journal of Business & Industrial Marketing, 2012
Purpose– This meta-analysis aims to aggregate empirical findings from extant inter-firm opportunism literature. Design/methodology/approach– First, a quantitative summary on the bivariate relationships between the antecedents and the consequences of opportunism is offered. Second, a multivariate analysis is employed to identify significant antecedents of opportunism and the process variables that mediate the relationship between inter-firm opportunism and organizational performance. Findings– Results reveal that goal congruence has the largest influence on inter-firm opportunism, followed by cultural sensitivity, communication, and environmental volatility, norms, governance emphasis, and relative dependence. These important antecedents represent significant research directions for inter-firm opportunism. In addition, inter-firm opportunism affects organizational performance through a mediating process including commitment, functional conflict, overall satisfaction, and trust. Commitment is found to act as a major moderating construct between inter-firm opportunism and its other significant consequences in the revised model. Originality/value– This study widens the horizon on inter-firm opportunism research by examining a much greater number of effect sizes and by employing a more complex framework of the mechanism mediating the inter-firm opportunism-organizational performance relationship and does so more effectively than any individual research work.
Industrial Marketing Management, 2021
Few alliance studies have theorized that opportunism's effect on performance efficiency is contingent on other factors. Our study posits that alliance partner size and no end-point serve as interface structure mechanisms that condition the efficiency outcomes of partner-based opportunism in alliances. We argue that the direct effect of partner-based opportunism, and the moderation effects of alliance partner size and no end-point, differ according to the alliance activities context (i.e., upstream vs. downstream). Our hypotheses were tested using a survey of 361 alliances. We observe that partner-based opportunism is indeed associated with performance inefficiencies. Further, while alliance partner size has a nonsignificant moderating effect, no end-point has a positive moderating effect, on the relationship between partner-based opportunism and efficiency; that is, the negative link becomes less negative for no end-point alliances. We find that the negative performance relevance of partner-based opportunism remains significant among upstream alliances, but drops to nonsignificance for downstream ones. We show that alliance partner size has a negative moderating effect on the link partner-based opportunism to performance efficiency among downstream, but not upstream, alliances. Lastly, we find that the positive moderating effect of no end-point is significant among upstream, but not downstream, alliances. Our results generate important implications for managers' efforts to design and govern alliances.
Passive and Active Opportunism in Interorganizational Exchange
Journal of Marketing, 2013
This article examines how parties to interorganizational relationships respond differently to active and passive opportunism and how these opportunism forms erode satisfaction with performance in interorganizational relationships. The multi-method approach of two experiments and one longitudinal field study demonstrate that firms tolerate more passive opportunism than active opportunism (experiment one) and that transaction costs play a mediating role between opportunism form and satisfaction with performance of the relationship (experiment two). Finally, the field study demonstrates that passive opportunism has a more corrosive impact on satisfaction with performance than active opportunism over time. Together, the findings underscore the importance of distinguishing between passive and active opportunism and the need to develop a greater understanding of its management and consequences.
Determinants of Partner Opportunism in Strategic Alliances: A Conceptual Framework
Journal of Business and Psychology, 2010
Purpose We present a comprehensive framework of the key determinants of partner opportunism in strategic alliances. Design/methodology/approach We propose an extended definition of partner opportunism and three categories of the determinants of partner opportunism based on a review of the literature. These categories comprise economic factors (equity involvement, asymmetric alliance-specific investments, mutual hostages, and payoff inequity), relational factors (cultural diversity and goal incompatibilities), and temporal factors (alliance horizon and pressures for quick results). Findings The framework of determinants makes clear how the various determinants of partner opportunism may be differentially salient in the three major alliance types, namely, equity joint ventures, minority equity alliances, and nonequity alliances. Implications Based on the framework, a number of propositions are developed to facilitate empirical research on partner opportunism. Managerial implications flowing from the proposed framework are also discussed.
Procedia - Social and Behavioral Sciences, 2013
This paper investigates the multiple mediating effects of opportunism and cooperation on the relationship between relationshipspecific investments and partnership performance in the Turkish automotive distribution channel. The theoretical view of this study is based on the relational view of inter-organizational competitive advantage that provides an alternative perspective for expropriation effect of specific investments. In order to test the effect of multiple mediators on partnership performance, the empirical data were collected from the vehicle dealers in the Turkish automotive distribution channel. The findings show that relationship-specific investments mediated by opportunistic behavior and cooperative behavior have a greater positive effect on partnership performance.
Safeguarding Interorganizational Performance and Continuity Under Ex Post Opportunism
Management Science, 2003
O pportunism is a central construct in exchange theory. Economists contend that despite the firm's best efforts to erect governance structures that reduce opportunism and preserve outcomes, there is always some opportunism that remains once the transaction is in place. Despite this, there are few studies that systematically investigate the safeguarding efficacy of relationship attributes in the presence of such ex post opportunism. In this research, we develop a theoretical framework and provide a longitudinal test of the ability of various relationship safeguards to preserve performance outcomes and future expectations given varying levels of ex post opportunism in the relationship. Our survey results from over 300 buyers and suppliers indicates that given lower levels of opportunism, bilateral idiosyncratic investments and interpersonal trust enhance performance outcomes and future expectations, while goal congruence has no discernable effect. However, at higher levels of opportunism, goal congruence becomes a more powerful safeguard, while interpersonal trust becomes less effective. Bilateral idiosyncratic investments continue to preserve performance outcomes and future expectations even at higher levels of opportunism. Implications for the long-term management of interorganizational alliances are discussed.
SSRN Electronic Journal, 2000
This paper focuses specifically on interfirm strategic collaboration as a vehicle for knowledge management across firm boundaries. Drawing on the widely accepted exploitation/exploration dichotomy, this article contributes to research concerning alliance dynamics by combining elements related to alliance formation, negotiation and outcomes. By integrating the exploitation/exploration arguments into a set of knowledge-related strategic motives for alliance formation, the main arguments focus on the influence of governance mechanisms on the relationship between strategic fit and outcome in terms of knowledge. This paper integrates the emergent knowledge-based theories of alliance formation (and outcome) with existing theories related to governance and coordination in an attempt to explain how the knowledge outcome of collaborative relationships may be determined by the strategic fit of partner motives, influenced by the mix of contractual and procedural governance. A series of testable propositions are derived in order to answer the following question: Do combinations of contractual and procedural coordination, given specific strategic fit, explain performance differentials?