Uncertainty, opportunistic behavior, and governance in construction projects: The efficacy of contracts

Opportunism is recognized as a key factor that can affect the quality of relationship between buyers and sellers. However, there is a relative lack of research in the antecedents of opportunism. This paper draws upon transaction cost economics and relationship marketing paradigms to propose a conceptual framework involving six potential antecedents. Data from 270 franchisees in a Korea based franchise system is used to test the hypotheses. Results from a structural equation model show that the conflict in a relationship significantly increases franchisee opportunism. Furthermore, conflict mediates the effects of other antecedents in the framework which include alternative attractiveness, goal incongruity, unfairness, transaction-specific investments, and termination cost. The study provides theoretical and managerial insights into understanding and controlling opportunism.

https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID2552335_code109254.pdf?abstractid=2505538&mirid=1&type=2

Opportunism in Buyer-Seller Relationships: Some Unexplored Antecedents

Exporting research is an established facet of the field of international marketing. That stated, the radical increase in recent export activity necessitates a sustained research effort devoted to the topic. In this article, the authors provide a qualitative review of the core theoretical exporting areas and evaluate the exporting domain quantitatively over six decades (1958–2016). For the quantitative analysis, they use multidimensional scaling and apply established bibliometric principles to offer an understanding of the field and to provide suggestions for future exporting research. For the evaluations, the authors used data from 830 articles with 52,191 citations from 35 journals. Using cocitation analysis as the basis to evaluate the data, they propose a series of intellectual structure implications on exporting that relate to internationalization process stages, dynamic capabilities, knowledge scarcity, social networks, export marketing strategy, absorptive capacity and learning, and nonlinea...

/pdf/an-assessment-of-the-exporting-literature-using-theory-and-5bpdr4fvq7.pdf

An Assessment of the Exporting Literature: Using Theory and Data to Identify Future Research Directions

This study seeks: (1) to identify whether the form of governance adopted (relational or contractual) drives suppliers' and buyers' collaboration in the same way; (2) to examine if both parties hold a similar view on the simultaneous use of both governance forms; and (3) to explore whether their perceptions on governance, collaboration and performance differ.,The study used data from a survey of 150 matched buyer–supplier dyads from South Korea, using structural equation modeling (SEM) for the analysis.,(1) While governance mechanisms assist collaboration and affect operational and innovation outcomes, the significance and relative strength of the proposed relationships are perceived differently by buyers and suppliers. (2) Contrasting results are found regarding the interaction effect of the governance mechanisms on collaboration: a complementary relationship for the buyer and a substitutive relationship for the supplier.,Studies on buyer–supplier relationships have yielded inconsistent results regarding whether the interactions of governance mechanisms function as substitutes or complements, because research has largely been conducted from the buyer's perspective, rather than the supplier's; this imbalanced view calls for integrated perspectives.

The interplay of governance mechanisms in supply chain collaboration and performance in buyer–supplier dyads: substitutes or complements

Breaching relational obligations in a buyer-supplier relationship: Feelings of violation, fairness perceptions and supplier switching

The dual effects of perceived unfairness on opportunism in channel relationships

Tripartite role of communications in channel relationships: Mitigating exchange hazards, reducing opportunism, and curtailing its ill effects on relationship performance

Learning outcomes
Through this case, participants will be able to:
▪ understand the different approaches to preparing operating budgets;
▪ classify the costs based on traceability to its cost centres;
▪ understand the difference in budget preparation and its analysis under different cost centres;
▪ put together the required information, identify the format and prepare major operating budgets; and
▪ evaluate operating budgets and give suggestions to the company based on budget analysis.

Case overview/synopsis
This case is about a manufacturing company that is going to introduce a budgeting system. It highlights the process of information collecting from key employees for budget preparation. This case also deals with various decisions to be made during the implementation of the new system such as the context of budgets, cost units and sequence of budgets.This case will help students to enhance their understanding of the operating budgets. The students will able to visualize the difficulty faced by companies to implement a new system.

Complexity academic level
This case is applicable in the courses such as Master of Business Administration, Master of Commerce or other postgraduate studies. This can also be discussed in professional courses such as Chartered Accountants, Certified Management Accountants, Company Secretaries, Institute of Cost and Works Accountants of India and Chartered Financial Analysts.

Supplementary materials
Teaching Notes are available for educators only.

Subject code
CSS 1: Accounting and Finance.


Sandip Trada

Papers

The dual effects of perceived unfairness on opportunism in channel relationships

Tripartite role of communications in channel relationships: Mitigating exchange hazards, reducing opportunism, and curtailing its ill effects on relationship performance

Super Papers Private Limited: preparation of operating budgets