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.

KEYWORD

Governance mechanism, Opportunism.

REFERENCES(43)open

  1. [jounal] Anderson, J. C. / 1988 / Structural equation modeling in practice; A review and recommended two-step approach / Psychological Bulletin 103 (3) : 411 ~ 423

  2. [jounal] Anderson, James C. / 1990 / A model of distributor firm and manufacturer firm working partnerships / Journal of Marketing 54 : 42 ~ 58

  3. [jounal] Armstrong, J. S. / 1977 / Evaluating nonresponse bias in mail surveys / Journal of Marketing Research 14 : 396 ~ 402

  4. [jounal] Baiman, S. / 2002 / Incentives issues in inter-firm relationships. Accounting / Organizations and Society 27 : 213 ~ 238

  5. [jounal] Barnes, Bradely R. / 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

  6. [jounal] Brown, James R. / 2000 / Managing marketing channel opportunism: The efficacy of alternative governance mechanisms / Journal of Marketing 64 : 31 ~ 65

  7. [jounal] Caniels, Marjolein / 2010 / The safeguarding effect of governance mechanisms in iter-firm exchange : The decisive role of mutual opportunism / British Journal of Management 21 : 239 ~ 254

  8. [jounal] Carson, Stephen J. / 2006 / Uncertainty, opportunism, and governance : The effects of volatility and ambiguity on formal and informal contracting / Academy of Management Journal 49 (5) : 1056 ~ 1077

  9. [jounal] Churchill, G A. / 1979 / A paradigm for developing better measures of marketing constructs / Journal of Marketing Research 16 : 64 ~ 73

  10. [jounal] Das, T. K. / 2010 / Determinants of partner opportunism in strategic alliances : A conceptual framework / Journal of Business Psychology 25 : 55 ~ 74

  11. [jounal] Das, T. K. / 1998 / Between trust and control : Developing confidence in partner cooperation in alliances / Academy of Management Review 23 : 491 ~ 512

  12. [jounal] Geykens, Inge / 1998 / Generalizations about trust in marketing channels using meta-analysis / International Journal of Research in Marketing 15 (3) : 223 ~ 248

  13. [jounal] Geykens, Inge / 2006 / Make, buy or ally : a transaction cost theory metaanalysis / Academy of Management Journal 49 (3) : 519 ~ 543

  14. [jounal] Ghoshal, S. / 1996 / Bad for practice : A critique of the transaction cost theory / Academy of Management Review 21 : 13 ~ 47

  15. [jounal] Granovetter, M. / 1985 / Economic action and social structure : The problem of embededness / American Journal of Sociology 91 (3) : 485 ~ 510

  16. [jounal] Gruen, T. W. / 2000 / Determinants and outcomes of plan objectivity and implementation in category management relationships / Journal of Retailing 76 (4) : 483 ~ 510

  17. [jounal] Gulati, R. / 1998 / The architecture of cooperation : managing coordination costs and appropriation concerns in strategic alliances / Administrative Science Quarterly 43 : 781 ~ 814

  18. [jounal] Hadfield, G. / 1991 / Problematic relations : Franchising and the law of incomplete contracts / Stanford Law Review 42 : 927 ~ 992

  19. [jounal] Hawkins, Timothy G. / 2008 / Antecedents and consequences of opportunism in buyer-supplier relations : Research synthesis and new frontiers / Industrial Marketing Management 37 : 895 ~ 909

  20. [jounal] Heide, J. B. / 2003 / Plural Governance in Industrial Purchasing / Journal of Marketing 67 (4) : 18 ~ 29

  21. [jounal] Heide, Jan B. / 1992 / Do norms matter in marketing relationships / Journal of Marketing 56 : 32 ~ 44

  22. [jounal] Heide, J. B. / 2006 / Friends, Business people, and Relationship Roles : A conceptual framework and research agenda / Journal of Marketing 70 (3) : 90 ~ 103

  23. [jounal] Hendrikse G. / 2009 / Preface on network governance / International Studies of Management & Organization 39 (4) : 3 ~ 7

  24. [book] Hooley, Graham / 2004 / Marketing Strategy and Competitive Positioning / Prentice Hall

  25. [jounal] John, G. / 1984 / An empirical investigation of some antecedents of opportunism in a marketing channel / Journal of Marketing Research : 278 ~ 289

  26. [jounal] Kaufmann, P. J. / 1992 / The dimensions of commercial exchange / Marketing Letters 3 (2) : 171 ~ 185

  27. [jounal] Kumar, Alok, Heide, J. B. / 2011 / Performance implications of mismatched governance regimes across external and internal relationships / Journal of Marketing 75 (2) : 1 ~ 17

  28. [jounal] Lado, Augustine A. / 2008 / Trust-opportunism paradox, relationalism and performance in interfirm relationships : Evidence from the retail industry / Strategic Management Journal 29 (4) : 401 ~ 423

  29. [jounal] Lai, C. S. / 2005 / Governance mechanisms of opportunism : Integrating from transaction cost analysis and relational exchange theory / Taiwan Academy of Management Journal 5 (1) : 1 ~ 24

  30. [jounal] Larson, A. / 1992 / Network dyads in entrepreneurial settings: a study of governance of exchange relationships / Administrative Science Quarterly 37 : 76 ~ 104

  31. [jounal] Lubatkin, Michael / 2007 / An embeddedness framing of governance and opportunism: Towards a cross-nationally accommodating theory of agency / Journal of Organizational Behavior 28 : 43 ~ 58

  32. [book] Macneil, I. R. / 1980 / The new social contract / Yale University Press

  33. [jounal] Mellewigt, T. / 2007 / Trust and formal contracts in interorganizational relationships-substitues and complements / Managerial and Decision Economics 28 : 833 ~ 847

  34. [jounal] Noordewier, T. G. / 1990 / Peformance outcomes of purchasing arrangements in industrial buyer- vendor relationships / Journal of Marketing 50 : 80 ~ 93

  35. [jounal] Paulin, Michele / 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

  36. [jounal] Poppo, L. / 2002 / Do formal contracts and relational governance function as substitues or complements? / Strategic Management Journal 23 (8) : 707 ~ 726

  37. [jounal] Rai, Arun, Keil, / 2012 / Hybrid relational-contractual governance for business process outsourcing / Journal of Management and Information Systems 29 (2) : 213 ~ 256

  38. [jounal] Rajamma, Rejasree K. / 2011 / Dimensions and Outcomes of B2B Relational Exchange: a Meta Analysis / Journal of Business & Industrial Marketing 26 (2) : 104 ~ 114

  39. [jounal] Rindfleisch, Aric / 2010 / Transaction costs, opportunism, and governance: Contextual considerations and future research opportunities / Marketing Letters 21 : 211 ~ 222

  40. [jounal] Sanchez, Jose M. / 2012 / Evolving functions of intergorganizational governance mechanisms / Managerial and Decision Economics 34 (3) : 301 ~ 318

  41. [jounal] Wathne, Kenneth H. / 2000 / Opportunism in interfirm relationships: Froms, outcomes, and solutions / Journal of Marketing 64 : 36 ~ 51

  42. [book] Williamson, G. E. / 1985 / The economic institutions of capitalism / The Free Dress

  43. [jounal] Wuyts, Stefan / 2005 / The formation of buyer- supplier relationships: detailed contract drafting and close partner selection / Journal of Marketing 69 : 103 ~ 117