- Log In/Sign Up
- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS, ESCI
ISSN : 1738-3110
Governance Mechanisms and Opportunism in Inter-firm Relational Exchanges
Abstract
Purpose - The general objective of this study is to explain the governance mechanisms of relational exchanges by considering both economic and relational factors. As regards the relationship between opportunism and governance mechanisms, opportunism was hypothesized as being positively related to the use of the authority mechanism, and negatively related with use of the trust mechanism. Research design, data, and methodology - Purchasing relationships between original equipment manufacturers (OEMs) and their component suppliers were chosen as the empirical setting. Purchasing specialists in each company, who interact regularly with suppliers and have the major responsibility for managing the exchange relationships with suppliers, were used as the respondents for this study. A mail survey methodology was employed to collect data in the final field survey. Results - As predicted, opportunistic behavior is found to be negatively related to the use of the trust mechanism and positively related to the use of the authority mechanism. Therefore, the result supports the proposed hypotheses. Conclusions - By integrating research streams, this study contributes to the marketing discipline by improving our understanding of when and why different mixtures of governance mechanisms are used.
- keywords
- Governance mechanism, Opportunism
Reference
Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice; A review and recommended two-step approach. Psychological Bulletin, 103(3), 411-423.
Anderson, James C., & Narus, James A. (1990). A model of distributor firm and manufacturer firm working partnerships. Journal of Marketing, 54(January), 42-58.
Armstrong, J. S., & Overton, T. (1977). Evaluating nonresponse bias in mail surveys. Journal of Marketing Research, 14(August), 396-402.
Baiman, S., & Rajan, M.V. (2002). Incentives issues in inter-firm relationships. Accounting, Organizations and Society, 27, 213-238.
Barnes, Bradely R., Leonidou, Leonidas C., Siu, Noel Y. M., & Leonidou, Constantinos N. (2010). Opportunism as the inhibiting trigger for developing long-term-oriented western exporter-Hong Kong importer relationships. Journal of International Marketing, 18(2), 35-63.
Brown, James R., Dev, Chekitan, and Lee, Dong-Jin (2000). Managing marketing channel opportunism: The efficacy of alternative governance mechanisms. Journal of Marketing, 64(April), 31-65.
Caniels, Marjolein, & Gelderman, Cees J. (2010). The safeguarding effect of governance mechanisms in iter-firm exchange: The decisive role of mutual opportunism. British Journal of Management, 21, 239-254.
Carson, Stephen J., Madhok, Anoop, & Wu, Tao (2006). Uncertainty, opportunism, and governance: The effects of volatility and ambiguity on formal and informal contracting. Academy of Management Journal, 49(5), 1056-1077.
Churchill, G A. (1979). A paradigm for developing better measures of marketing constructs. Journal of Marketing Research, 16(February), 64-73.
Das, T. K., & Rashman, Noushi (2010). Determinants of partner opportunism in strategic alliances: A conceptual framework. Journal of Business Psychology, 25, 55-74.
Das, T. K., & Teng, B. (1998). Between trust and control: Developing confidence in partner cooperation in alliances. Academy of Management Review, 23, 491-512.
Geykens, Inge, Jan-Benedict, E., Steenkamp, M., & Kumar, Nirmalya (1998). Generalizations about trust in marketing channels using meta-analysis. International Journal of Research in Marketing, 15(3), 223-248.
Geykens, Inge, Jan-Benedict, E., Steenkamp, M., & Kumar, Nirmalya (2006). Make, buy or ally: a transaction cost theory metaanalysis. Academy of Management Journal, 49(3), 519-543.
Ghoshal, S., & Moran, P. (1996). Bad for practice: A critique of the transaction cost theory. Academy of Management Review, 21, 13-47.
Granovetter, M. (1985). Economic action and social structure: The problem of embededness. American Journal of Sociology, 91(3), 485-510.
Gruen, T. W., & Shah, R. H. (2000). Determinants and outcomes of plan objectivity and implementation in category management relationships. Journal of Retailing, 76(4), 483-510.
Gulati, R., & Singh, H. (1998). The architecture of cooperation: managing coordination costs and appropriation concerns in strategic alliances. Administrative Science Quarterly, 43, 781-814.
Hadfield, G. (1991). Problematic relations: Franchising and the law of incomplete contracts. Stanford Law Review, 42, 927-992.
Hawkins, Timothy G., Wittmann, C. Michael, & Beyerlein, Michael L. (2008). Antecedents and consequences of opportunism in buyer-supplier relations: Research synthesis and new frontiers. Industrial Marketing Management, 37, 895-909.
Heide, J. B. (2003). Plural Governance in Industrial Purchasing. Journal of Marketing, 67(4), 18-29.
Heide, Jan B., & John, George (1992). Do norms matter in marketing relationships. Journal of Marketing, 56(April), 32-44.
Heide, J. B., & Wathne, K. H. (2006). Friends, Business people, and Relationship Roles: A conceptual framework and research agenda. Journal of Marketing, 70(3), 90-103.
Hendrikse G., & Windsperger, J. (2009). Preface on network governance. International Studies of Management & Organization, 39(4), 3-7.
Hooley, Graham, Saunders, John, & Piercy, Nigel F. (2004). Marketing Strategy and Competitive Positioning. Prentice Hall.
John, G. (1984). An empirical investigation of some antecedents of opportunism in a marketing channel. Journal of Marketing Research, August, 278-289.
Kaufmann, P.J., & Dant, R.P. (1992). The dimensions of commercial exchange. Marketing Letters, 3(2), 171-185.
Kumar, Alok, Heide, J. B., & Wathne, K. H. (2011). Performance implications of mismatched governance regimes across external and internal relationships. Journal of Marketing, 75(2), 1-17.
Lado, Augustine A., Dant, Rajiv R., & Tekleab, Amanuel G. (2008). Trust-opportunism paradox, relationalism and performance in interfirm relationships: Evidence from the retail industry. Strategic Management Journal, 29(4), 401-423.
Lai, C. S., Liu, S. S., Yang, C. F., Lin, H. W., & Tsai, H. W. (2005). Governance mechanisms of opportunism: Integrating from transaction cost analysis and relational exchange theory. Taiwan Academy of Management Journal, 5(1), 1-24.
Larson, A. (1992). Network dyads in entrepreneurial settings: a study of governance of exchange relationships. Administrative Science Quarterly, 37(March), 76-104.
Lubatkin, Michael, Lane, Peter J., Collin, Sven, & Very, Philippe (2007) An embeddedness framing of governance and opportunism: Towards a cross-nationally accommodating theory of agency. Journal of Organizational Behavior, 28, 43-58.
Macneil, I. R. (1980). The new social contract. New Haven: Yale University Press.
Mellewigt, T., Madhok, A., & Weibel, A. (2007). Trust and formal contracts in interorganizational relationships-substitues and complements. Managerial and Decision Economics, 28, 833-847.
Noordewier, T. G., John, G., & Nevin, J. R. (1990). Peformance outcomes of purchasing arrangements in industrial buyer- vendor relationships. Journal of Marketing, 50(October), 80-93.
Paulin, Michele, & Ferguson, Ronald J. (2010). Relational Norms in Interfirm Exchanges: From Transactional Cost Economics to the Service-Dominant Logic. Journal of Business-to-Business Marketing, 17(4), 365-405
Poppo, L., & Zenger, T. (2002). Do formal contracts and relational governance function as substitues or complements? Strategic Management Journal, 23(8), 707-726.
Rai, Arun, Keil,, Mark, Hornyak, Rob, & Wullenweber, Kim (2012). Hybrid relational-contractual governance for business process outsourcing. Journal of Management and Information Systems, 29(2), 213-256.
Rajamma, Rejasree K., Zolfagharian, Mohammad Ali, & Pelton, Lou E. (2011) Dimensions and Outcomes of B2B Relational Exchange: a Meta Analysis. Journal of Business & Industrial Marketing, 26(2), 104-114
Rindfleisch, Aric, Antia, Kersi, Bercovitz, Janet, Brown, James R., Cannon, Joseph, Carson, Stephen J., Ghosh, Mrinal, Helper, Susan, Robertson, Diana C., & Wathne, Kenneth H. (2010). Transaction costs, opportunism, and governance: Contextual considerations and future research opportunities. Marketing Letters, 21, 211-222.
Sanchez, Jose M., Velez, Maria L., & Alvarez-Dardet, Concha (2012). Evolving functions of intergorganizational governance mechanisms. Managerial and Decision Economics, 34(3-5), 301-318.
Wathne, Kenneth H., & Heide, Jan B. (2000). Opportunism in interfirm relationships: Froms, outcomes, and solutions. Journal of Marketing, 64(October), 36-51.
Williamson, G. E. (1985). The economic institutions of capitalism. New York: The Free Dress.
Wuyts, Stefan, & Geyskens, Inge (2005). The formation of buyer- supplier relationships: detailed contract drafting and close partner selection. Journal of Marketing, 69(October), 103-117.
- Downloaded
- Viewed
- 0KCI Citations
- 0WOS Citations