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Toward understanding passive opportunism in dedicated channel relationships

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  • Jody Crosno
  • Chris Manolis
  • Robert Dahlstrom

Abstract

The investments made in an interfirm relationship have implications for the effectiveness of an agreement. In this study, we investigate whether these investments influence the level of passive opportunism observed in a relationship. Whereas transaction cost theory suggests that firms that make idiosyncratic investments are reluctant to engage in opportunism, reactance theory offers logic suggesting that such investments may increase the likelihood of opportunism. In addition, we investigate whether perceived justice influences the effect of investments on levels of passive opportunism. Data from 120 retail managers in the Norwegian consumer electronics industry support reactance theory predictions and indicate that interactional justice moderates the relationship between specific assets and passive opportunism. We conclude with a discussion of the implications for theory and research. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Jody Crosno & Chris Manolis & Robert Dahlstrom, 2013. "Toward understanding passive opportunism in dedicated channel relationships," Marketing Letters, Springer, vol. 24(4), pages 353-368, December.
    • Handle: RePEc:kap:mktlet:v:24:y:2013:i:4:p:353-368
    DOI: 10.1007/s11002-012-9220-3
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    References listed on IDEAS

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    1. James Brown & Stephan Grzeskowiak & Chekitan Dev, 2009. "Using influence strategies to reduce marketing channel opportunism: The moderating effect of relational norms," Marketing Letters, Springer, vol. 20(2), pages 139-154, June.
    2. Erin Anderson, 1985. "The Salesperson as Outside Agent or Employee: A Transaction Cost Analysis," Marketing Science, INFORMS, vol. 4(3), pages 234-254.
    3. Aric Rindfleisch & Kersi Antia & Janet Bercovitz & James Brown & Joseph Cannon & Stephen Carson & Mrinal Ghosh & Susan Helper & Diana Robertson & Kenneth Wathne, 2010. "Transaction costs, opportunism, and governance: Contextual considerations and future research opportunities," Marketing Letters, Springer, vol. 21(3), pages 211-222, September.
    4. Anderson, Erin, 1988. "Transaction costs as determinants of opportunism in integrated and independent sales forces," Journal of Economic Behavior & Organization, Elsevier, vol. 9(3), pages 247-264, April.
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    Cited by:

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    2. Seggie, Steven H. & Griffith, David A., 2021. "The moderating effects of economic and strategic relationship value in tolerating active and passive opportunism," Journal of Business Research, Elsevier, vol. 128(C), pages 233-244.
    3. Park, Jin Yong & Kim, Changju, 2023. "The role of organizational justice and social interaction in mitigating the negative effects of high-performance member retailers on strategic integration," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    4. Wang, Qingtao & Li, Julie Juan & Yang, Defeng, 2022. "Unequal participation in joint new product development: The roles of information opportunism concern and contract binding force," Journal of Business Research, Elsevier, vol. 145(C), pages 21-34.
    5. Chun Zhang & Julie Juan Li & Ying Huang, 2017. "Sustaining relationships after opportunism and misunderstanding: the role of formalization and socialization," Marketing Letters, Springer, vol. 28(2), pages 305-319, June.
    6. Bhattacharya, Ananya & Singh, Prakash J. & Nand, Alka Ashwini, 2015. "Antecedents of buyer opportunistic behavior in outsourcing relationships," International Journal of Production Economics, Elsevier, vol. 166(C), pages 258-268.
    7. Mohammad Alghababsheh & David Gallear & Mushfiqur Rahman, 2020. "Balancing the Scales of Justice: Do Perceptions of Buyers’ Justice Drive Suppliers’ Social Performance?," Journal of Business Ethics, Springer, vol. 163(1), pages 125-150, April.

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