Understanding opportunism in buyer–supplier–supplier triadic relationships: the role of power asymmetry
ISSN: 0025-1747
Article publication date: 1 March 2022
Issue publication date: 10 November 2022
Abstract
Purpose
Firms often struggle with opportunistic behavior from supply chain partners. Relying on Transaction Cost Economics and its extensions, this study developed a conceptual model theorizing the antecedence, consequences and conditional factors of opportunism within a buyer–supplier–supplier triadic relationship.
Design/methodology/approach
This study employed a cross-sectional survey data collected from 200 U.S. firms. The collected data were analyzed with SPSS and AMOS, the two statistical software, for reliability, validity, confirmatory factor analyses and structural equation modeling.
Findings
First, opportunism negatively influences operational performance and business performance, and such an effect is fully mediated by relationship stability. Second, this study classified power asymmetry as asymmetrical power discrepancy and asymmetrical power advantage with these two forms playing different roles in influencing opportunism. Results indicate that asymmetrical power discrepancy induces opportunism while asymmetrical power advantage strengthens the negative influence that opportunism has on relationship stability. Additionally, the mediated moderating effect of asymmetrical power advantage by relationship stability is confirmed.
Originality/value
The results provide significant academic and managerial insights that can guide managerial efforts in distinguishing types of power asymmetry, controlling opportunism and further mitigating the consequences of opportunism within a triadic relationship.
Keywords
Citation
Zou, Q. and Wang, Y. (2022), "Understanding opportunism in buyer–supplier–supplier triadic relationships: the role of power asymmetry", Management Decision, Vol. 60 No. 11, pp. 2952-2971. https://doi.org/10.1108/MD-05-2021-0654
Publisher
:Emerald Publishing Limited
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