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How Service Provider Dependence Perceptions Moderate the Power–Opportunism Relationship with Professional Services

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  • Sean M. Handley
  • Jurriaan de Jong
  • W. C. Benton

Abstract

In this study, we develop a novel theoretical model of how the relationship between the buyer's use of power and the service provider's opportunism is moderated by the provider's perceptions of dependence advantage. Analyzing a dyadic dataset of 109 professional service relationships, we find that the extent to which the buyer's use of mediated and non‐mediated power aligns with the service provider's perceptions of relative dependence is germane to the power–opportunism relationship. The notion that firm A's opportunism, in response to firm B's use of power, is in part influenced by firm A's perceptions of the relative dependence in the relationship, constitutes a significant theoretical contribution to the power‐dependence literature. Our findings underline the importance of (i) understanding the relative dependence in an inter‐organizational relationship, (ii) managing the other firm's perception of this dependence, and (iii) ensuring that the use of power is aligned with the other firm's perception of the relative dependence in the relationship.

Suggested Citation

  • Sean M. Handley & Jurriaan de Jong & W. C. Benton, 2019. "How Service Provider Dependence Perceptions Moderate the Power–Opportunism Relationship with Professional Services," Production and Operations Management, Production and Operations Management Society, vol. 28(7), pages 1692-1715, July.
    • Handle: RePEc:bla:popmgt:v:28:y:2019:i:7:p:1692-1715
    DOI: 10.1111/poms.13013
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    Cited by:

    1. Vos, F.G.S. & Van der Lelij, R. & Schiele, H. & Praas, N.H.J., 2021. "Mediating the impact of power on supplier satisfaction: Do buyer status and relational conflict matter?," International Journal of Production Economics, Elsevier, vol. 239(C).
    2. Mikko Ketokivi & Joseph T. Mahoney, 2020. "Transaction Cost Economics As a Theory of Supply Chain Efficiency," Production and Operations Management, Production and Operations Management Society, vol. 29(4), pages 1011-1031, April.
    3. Liu, Gordon & Aroean, Lukman & Ko, Wai Wai, 2023. "Service innovation in business ecosystem: The roles of shared goals, coopetition, and interfirm power," International Journal of Production Economics, Elsevier, vol. 255(C).
    4. Lumineau, Fabrice & Jin, Jason Lu & Sheng, Shibin & Zhou, Kevin Zheng, 2022. "Asset specificity asymmetry and supplier opportunism in buyer–supplier exchanges," Journal of Business Research, Elsevier, vol. 149(C), pages 85-100.
    5. Alessandra Ricciardelli & Nicola Capolupo & Paola Adinolfi & Gianluigi Mangia, 2024. "Unveiling the Good and Evil of Organisational Power: An Empirical Study," International Journal of Business and Management, Canadian Center of Science and Education, vol. 19(2), pages 1-1, March.
    6. Huo, Baofeng & Liu, Ruolei & Tian, Min, 2022. "The bright side of dependence asymmetry: Mitigating power use and facilitating relational ties," International Journal of Production Economics, Elsevier, vol. 251(C).
    7. Fengying Hu & Zhenglong Zhou, 2022. "Monopoly or competition: strategic analysis of a retailing technology service provision," Electronic Commerce Research, Springer, vol. 22(4), pages 1651-1689, December.
    8. Yin, Qiaoyi & Song, Dian & Lai, Fujun & Collins, Brian J. & Dogru, Ali K., 2023. "Customizing governance mechanisms to reduce opportunism in buyer–supplier relationships in the digital economy," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    9. Miriam Wilhelm & Veronica H. Villena, 2021. "Cascading Sustainability in Multi‐tier Supply Chains: When Do Chinese Suppliers Adopt Sustainable Procurement?," Production and Operations Management, Production and Operations Management Society, vol. 30(11), pages 4198-4218, November.

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