Trust-opportunism paradox, relationalism, and performance in interfirm relationships: evidence from the retail industry

Building on recent theoretical work documenting that interorganizational relationships (IORs) are 'multifaceted and multiplex' we investigate, from the agent's perspective, the joint effects of trust and opportunism in fostering (or inhibiting) relationalism, which, in turn, is predic...

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Bibliographic Details
Published in:Strategic management journal 2008-04, Vol.29 (4), p.401-423
Main Authors: Lado, Augustine A., Dant, Rajiv R., Tekleab, Amanuel G.
Format: Article
Language:English
Subjects:
Alliances
Business networks
Business studies
Corporate strategies
Credibility
Curvature
interfirm relationships
Interindustry economics
Longitudinal studies
Marketing
Opportunistic behavior
Organizational behavior
Paradoxes
Property trusts
relationalism
Relationship marketing
Retail trade
Retailing industry
Studies
Symmetry
Transaction costs
Trust
trust-opportunism paradox
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Summary:Building on recent theoretical work documenting that interorganizational relationships (IORs) are 'multifaceted and multiplex' we investigate, from the agent's perspective, the joint effects of trust and opportunism in fostering (or inhibiting) relationalism, which, in turn, is predicted to influence performance within interfirm exchange relationships. Based on longitudinal survey data on 409 catalog intermediaries affiliated with a large retail firm, we found strong support for most of the hypothesized relationships. Implications for future research are offered.
ISSN:0143-2095
1097-0266
DOI:10.1002/smj.667