Individualism, Collectivism, and Opportunism: A Cultural Perspective on Transaction Cost Economics

Researchers criticize the transaction cost economics (TCE) paradigm for over-generalizing the assumption of opportunism as human nature. We suggest that opportunistic propensity is affected by cultural prior conditioning of individualism-collectivism (I-C). Specifically, we propose that individualis...

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Bibliographic Details
Published in:Journal of management 2002-08, Vol.28 (4), p.567-583
Main Authors: Chen, Chao C., Peng, Mike W., Saparito, Patrick A.
Format: Article
Language:English
Subjects:
Collectivism
Cross cultural studies
Economic theory
Individualism
Social sciences
Transactional analysis
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Summary:Researchers criticize the transaction cost economics (TCE) paradigm for over-generalizing the assumption of opportunism as human nature. We suggest that opportunistic propensity is affected by cultural prior conditioning of individualism-collectivism (I-C). Specifically, we propose that individualists have a higher opportunistic propensity in intra-group transactions, and collectivists in inter-group transactions. Our cultural specification of opportunism helps TCE to more effectively accommodate some criticisms and more realistically deal with problems of economic organization in today’s global economy.
ISSN:0149-2063
1557-1211
DOI:10.1177/014920630202800405