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.

Cooperation and Coordination : The role of trust in inter-organizational relationships

Abstract: How should we understand the role of trust in inter-organizational relationships? Trust refers to the ‘willingness of one party to be vulnerable to the actions of another party based on the expectations that the other will perform a particular action important to the trustor, irrespectively of the ability to monitor or control that other party’ (Mayer, Davis, & Schoorman, 1995: 712). The prevailing view in inter-organizational trust research is of trust as a mechanism, which entails a mutual willingness to accept vulnerability in the inter-organizational relationship (Mayer et al., 1995). Hence, inter-organizational trust research has suggested that trust makes partners willing to rely on each other, even though the other is potentially opportunistic, goals may be misaligned and the ability to monitor or control the other party is limited (Dyer & Singh, 1998; Zaheer & Venkatraman, 1995). In short, trust has been understood as a mechanism that eases concerns of opportunism and thereby enables cooperation.

Public and Private Forms of Opportunism Within the Organization: A Joint Examination of Budget and Effort Behavior

Abstract: We assert that some forms of opportunistic behavior within the organization are relatively transparent and, therefore, public in nature. Further, while organizations can tightly control such public opportunism, it may not be optimal for them to do so in the presence of private opportunism. To study how public and private forms of opportunism differ and interact, we jointly examine budget and effort behavior in a participative budgeting experiment. We group participants into producer/manager pairs and set the parameters such that the producer extracts the largest share of surplus from the manager by publicly setting the budget at zero and privately providing low effort. When the producer unilaterally sets the budget, the public opportunism of budgetary slack is higher and more affected by learning than the private opportunism of low effort. Giving the manager the power to reject the budget reduces budgetary slack by about 50 percent, but also generates reciprocity expectations and behavior. In particular, managers who allow more budgetary slack expect and receive higher effort from their producers on average. This reciprocity increases organizational performance by increasing the expected pay of the manager without decreasing the expected pay of the producer.

Ownership and trust in the governance structures of Spanish-Moroccan SMEs constituted as international joint ventures

Abstract: The choice of a specific governance structure can be related to different aspects. This structure can be critical in the success of a firm. In SMEs constituted as international joint ventures (IJVs) the governance structure may depend on different elements to large firms and they should be described. The relationship between partners can be decisive in determining these structures. So, the ownership, the participation of partners in different levels of governance, and trust are key factors in determining the choice of the governance structure. The results, from 210 SMEs constituted as Spanish-Moroccan IJVs, reveal the importance of the ownership concentration and the overlapping of roles in the choice of governance structures. Control and trust are important issues. The existence of a board or a sole administrator allows aligning the interest of partners and managers, limiting the possible situations of opportunism by managers. The existence of owner-managers in Spanish-Moroccan IJVs is positively related with the existence of a board, possibly because there is no convergence of interests between partners. The results show that trust and the control exercised via the governance structure are substitutive mechanisms.

Information, Opportunism and Business Performance: A Case of Small Businesses Managed by Women Entrepreneurs in Sri Lanka

Abstract: Prime objective of this study is to explore how ability to access information and opportunism of exchange partners affect the business performance of Small Businesses (SBs) particularly owner manager women entrepreneurs in Sri Lanka. The data were collected from 88 SBs which are owned and managed by women entrepreneurs in Sri Lanka, conducting face to face personal interviews. The data were analyzed using Partial Least Squares- Structural Equation Modelling (PLS-SEM). The results revealed that ability to access information has significant positive effect on business performance of SEs. Opportunism of exchange partners has a negative significant impact on business performance and ability to access information has significant negative effect on opportunism of exchange partners. Thus, the study provided sufficient evidences to conclude that information and opportunism of exchange partners have significant impact on business performance of SBs in Sri Lanka.