Reconsidering network embeddedness: Effects on different forms of opportunism

Zhao, Danyang; Wang, Longwei; Gu, Flora F.

doi:10.1016/j.jbusres.2021.03.029

Cited by 14 publications

(13 citation statements)

References 73 publications

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“…For contract enforcement, the fundamental guarantee of its effectiveness comes from strong “third-party enforcement,” which is held by the corresponding governmental and regulatory authorities (Antia and Frazier, 2001; Cao and Lumineau, 2015). In contrast, the punishment in business network often lacks formal authority (Zhao et al , 2021). Thus, comparing to business ties, political ties could provide stronger influence to enhance contract enforcement.…”

Section: Discussionmentioning

confidence: 99%

How do managerial ties affect contractual governance in interfirm cooperation?

Wang

Zhang

2022

JBIM

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Purpose Based on social capital theory and the institutional theory, this paper aims to explain how a firm’s business ties and political ties affect contractual governance in an interfirm cooperation, and under which institutional conditions they can play a better role. Design/methodology/approach This study tests conceptual model using questionnaire survey data collected from 227 firms in China. Hierarchical regression analysis is used to test the hypotheses. Findings This study finds that business ties have significant effect on contract completeness, while political ties have significant effect on contract enforcement. Moreover, these effects are contingent on some institutional factors. Market information transparency strengthens the effect of business ties on contract completeness and weakens the effect of political ties on contract completeness. Legal system completeness weakens the effect of political ties on contract enforcement. Practical implications This study suggests that managers could actively and selectively use their managerial ties to enhance contractual governance in an interfirm cooperation. Originality/value This study adds to the current understanding of how an interfirm cooperation is shaped by the firm’s social capital derived from external network relationships and extends the research on what social antecedents affect contractual governance. Moreover, this study sheds new light on when managerial ties can play a more beneficial role in emerging economies.

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Section: Discussionmentioning

confidence: 99%

How do managerial ties affect contractual governance in interfirm cooperation?

Wang

Zhang

2022

JBIM

Self Cite

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“…Moreover, environmental uncertainty influences opportunism in supply chain relationships of emerging markets and also reflects the market volatility and lack of information verifiability. Hence, eliminating opportunism in business relationships has long been the focus of scholarly activity (Zhao et al., 2021). In such a turbulent and rapidly changing business environment, rapid adoption of technological innovations, such as enterprise resource planning (ERP) and software application product (SAP), to allow firm to move faster and respond more quickly to market changes (Ahn, 2020).…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

Technological sensing and response capabilities as drivers for radical innovation in the context of apocalyptic uncertainty

Malik,

Sharma,

Kingshott

et al. 2023

R & D Management

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This paper introduces a new conceptual model to examine the impact of technological opportunism (technology sensing and response capabilities) on the adoption of incremental and radical technological innovation by small and medium enterprises (SMEs). We tested our hypotheses with data from 228 Indian SMEs using a symmetric method of partial least square structural equation modeling (PLS‐SEM) and the asymmetric method of fuzzy–set qualitative comparative analysis (fsQCA) followed by sensitivity analysis done by an artificial neural network (ANN) modeling. PLS‐SEM results highlighted the roles of technology sensing and response capabilities as key drivers of both incremental and radical product innovations and the strengthening of these relationships by market uncertainty triggered by external events and crises. Apart from this, the results of fsQCA demonstrated multiple configurations of dimensions associated with the adoption of technological innovations by SMEs. This paper extends the current literature by exploring the process by which SMEs may adopt different types of technological innovation. Our findings also have useful implications for SMEs aiming to adopt technological innovations.

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“… Luo (2006) classified opportunism into two manifestations including strong and weak forms of opportunism. This classification has been adopted by many scholars ( Zhao et al, 2021 ). The strong form of opportunism refers to “violation of the norms outlined in the express terms of the contract” and the weak opportunism refers to “violation of the tacit norms not expressively stated in the contract, but agreed upon in the cooperation.” Strong opportunism is more easily detected and thus more easily corrected by the cooperative system and may last for a shorter period.…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

The Influence of Corporate Boundary Personnel Guanxi and Organizational Loyalty on Opportunistic Intentions – Based on Theory of Reasoned Action Model

Zhao

Cai

2022

Front. Psychol.

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To understand the mechanism of boundary personnel opportunistic behaviors in collaborative R&D projects to reduce the risk of companies suffering from opportunism in collaboration. This study is conducted based on the context of collaborative R&D in the equipment manufacturing industry in Northeast China. This research mainly explored the mechanism of boundary personnel opportunistic intentions. Drawing on the theory of reasoned action (TRA), this study investigated the relationship between boundary personnel Guanxi, organizational loyalty, opportunistic attitudes, subjective norms, and intentions. In addition, this research examined the moderating role of the degree of dependence on the collaborator. In total, 524 valid questionnaires were finally collected. The data analysis results suggested that Guanxi inhibits opportunistic attitudes and subjective norms. Organizational loyalty promotes opportunistic attitudes and subjective norms. Opportunistic attitudes and subjective norms positively predict intentions. Opportunistic attitudes mediate between organizational loyalty and opportunistic intentions. Opportunistic subjective norms mediate between Guanxi and opportunistic intentions. Opportunistic subjective norms also mediate between organizational loyalty and opportunistic intentions. Dependence on the collaborator positively moderates the relationship between opportunistic attitudes and intentions. Therefore, it can be argued that in collaborative R&D in the equipment manufacturing industry, the corporate could stimulate boundary personnel to build good Guanxi to eliminate opportunism. At the same time, companies should lead employees to show loyalty properly, which opportunism is not wise in collaborative R&D. Finally, enterprises should objectively understand and evaluate the dependence relationship between the two partners in collaborative R&D to adopt the right strategy.

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Reconsidering network embeddedness: Effects on different forms of opportunism

Cited by 14 publications

References 73 publications

How do managerial ties affect contractual governance in interfirm cooperation?

How do managerial ties affect contractual governance in interfirm cooperation?

Technological sensing and response capabilities as drivers for radical innovation in the context of apocalyptic uncertainty

The Influence of Corporate Boundary Personnel Guanxi and Organizational Loyalty on Opportunistic Intentions – Based on Theory of Reasoned Action Model

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