Opportunism

About: Opportunism is a research topic. Over the lifetime, 2030 publications have been published within this topic receiving 97170 citations. The topic is also known as: opportunist.

Let's Give Opportunism the Proper Back Seat

Abstract: Nicolai Foss and Libby Weber (2016) propose to augment the micro-foundations of transaction cost economics (TCE) through enriching the bounded rationality concept. They argue that psychological frames and biases, when linked to different hierarchical forms, may give rise to differential, costly conflicts. In their view, such conflicts are entirely rooted in bounded rationality, as opposed to opportunism. In this contribution to the Academy of Management Review Dialogue Section, we raise three issues, which somewhat challenge Foss and Weber’s perspective on how to extend TCE, and we suggest an alternative path forward, thereby indeed giving opportunism ‘the proper back seat.’

The Role of Psychic Distance in Entry Mode Decisions: Magnifying the Threat of Opportunism or Increasing the Need for Local Knowledge?

Abstract: Research Summary: With respect to entry mode decisions, psychic distance may play two contradictory roles. On one hand, the transaction cost perspective is concerned with opportunism. Psychic distance magnifies the threat of opportunism, which encourages higher levels of control by foreign firms. Conversely, the new internalization perspective emphasizes the role of complementary assets controlled by local entities. Distance increases the need to access local knowledge, which encourages firms to seek joint ventures. By adopting an experimental approach and measuring managers' a priori perceptions of distance, this article contributes to the literature by providing a more sophisticated approach for discriminating between these effects. The results indicate that distance magnifies the need for firms to access complementary assets; however, distance does not appear to magnify the threat of opportunism. Managerial Summary: This article explores the role that psychic distance (i.e., differences across countries in culture, language, religion, etc.) plays in how firms enter foreign markets. Specifically, do they prefer wholly owned subsidiaries (WOS) or do they prefer to form joint ventures (JV) with local players? One perspective argues that firms are concerned about potential partners in a foreign market taking advantage of them; thus, they will prefer the greater control a WOS offers. Conversely, firms may simply recognize that these differences put them at a disadvantage and prefer a JV as a way to gain local knowledge. Our experiments indicate that the latter explanation dominates. When entering very different countries, managers seem to prefer JVs in order to access key local knowledge.

Boosting the effectiveness of channel governance options: The moderationing role of relational norms

Abstract: Purpose – The aim of this study is to explore possible contingent variables that might explain these twin contradictory effects of marketing channel governance. Franchisors govern their systems to limit opportunism and enhance performance. However, the exact opposite often occurs. Design/methodology/approach – This paper develops an integrative conceptual model of franchisor governance of its franchisees. This model is tested empirically with data collected from 197 Australian franchisees. Findings – Under strong relational norms, goal congruence and outcome monitoring limit franchisee opportunism; compliance enhances franchisee performance, while opportunism reduces it. With weaker norms, outcome monitoring facilitates compliance, and goal congruence boosts franchisee performance, as does franchisee opportunism. However, norms fail to mitigate behavioral monitoring’s negative impact on opportunism. Research limitations/implications – This research confirms the positive and negative effects of franchisor ...

Information Networks as a Safeguard from Opportunism in Industrial Supplier-Buyer Relationships

Abstract: The network idea has been gaining growing attention in the last decades. We analyse the applicability of networks as a mechanism that protects suppliers from buyers' opportunism. So-called information networks can function as a safeguard for dependent suppliers by reducing information asymmetries among the networking parties and by developing group norms. To confirm this hypothesis, we conduct an empirical study. The results show that information networks can provide protection for a dependent supplier if information about a buyer's unfair behaviour is credible, and if as a result this buyer suffers a considerable loss of reputation.