Advanced Search
MyIDEAS: Login to save this article or follow this journal

Opportunism in Inter-firm Exchanges in Emerging Markets


Author Info

  • Yadong Luo

    (University of Miami)

Registered author(s):


    This article develops a theoretical model of opportunism in inter-organizational exchanges in emerging markets. I decompose opportunism into 'strong form' (contractual norm violation) and 'weak form' (relational norm violation), and suggest that strong form tends to be more observable, measurable and remediable than weak form and its adverse effect on cooperation tends to be stronger but less enduring than weak form. I address how external uncertainty, a multidimensional concept that includes market volatility, legal unprotectability, information unverifiability and regulatory variability, along with internal uncertainty that reflects dyadic tensions such as goal disparity, resource misfit, cultural dissimilarity and bargaining asymmetry, together affect exchange members' opportunism. This is followed by further discussions on conditions under which firms will opt for strong form or weak form opportunism in the face of such external and internal uncertainties. I suggest that suppressing forces against opportunism necessitates not only economic ordering, such as contractual mechanisms and structural mechanisms, but also social ordering, such as relational mechanisms and justice mechanisms. I expect that economic ordering is more effective in resisting strong form opportunism while social ordering is more forceful in curtailing weak form opportunism.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL:
    Download Restriction: Become IACMR member or subscribe to MOR

    File URL:
    Download Restriction: Become IACMR member or subscribe to MOR

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by International Association of Chinese Management Research in its journal Management and Organization Review.

    Volume (Year): 2 (2006)
    Issue (Month): 1 (March)
    Pages: 121-147

    as in new window
    Handle: RePEc:cmr:mor101:v:1:y:2006:i:1:p:121-147

    Contact details of provider:
    Web page:

    Related research


    Find related papers by JEL classification:


    No references listed on IDEAS
    You can help add them by filling out this form.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Ayşe Elif Şengün & �etin �nder, 2011. "The Conditional Impact of Competence Trust on Inter-Firm Learning in a Collectivist SME Context," Industry and Innovation, Taylor & Francis Journals, vol. 18(8), pages 791-812, November.
    2. Jae-Seung Han & Sang-Yong Lee, 2013. "The impact of technology transfer contract on a firm’s market value in Korea," The Journal of Technology Transfer, Springer, vol. 38(5), pages 651-674, October.
    3. Zhe Zhang & Ming Jia & Difang Wan, 2012. "When does a partner’s reputation impact cooperation effects in partnerships?," Asia Pacific Journal of Management, Springer, vol. 29(3), pages 547-571, September.
    4. George Peng & Paul Beamish, 2014. "The effect of host country long term orientation on subsidiary ownership and survival," Asia Pacific Journal of Management, Springer, vol. 31(2), pages 423-453, June.
    5. Jianjun Zhang & Hao Ma, 2009. "Adoption of professional management in Chinese family business: A multilevel analysis of impetuses and impediments," Asia Pacific Journal of Management, Springer, vol. 26(1), pages 119-139, March.
    6. Domènec Melé, 2009. "The Practice of Networking: An Ethical Approach," Journal of Business Ethics, Springer, vol. 90(4), pages 487-503, December.
    7. Lumineau, Fabrice & Henderson, James, 2012. "The influence of relational experience and contractual governance on the negotiation strategy in buyer-supplier disputes," MPRA Paper 38510, University Library of Munich, Germany.
    8. Ju, Min & Murray, Janet Y. & Kotabe, Masaaki & Gao, Gerald Yong, 2011. "Reducing distributor opportunism in the export market: Effects of monitoring mechanisms, norm-based information exchange, and market orientation," Journal of World Business, Elsevier, vol. 46(4), pages 487-496, October.


    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:cmr:mor101:v:1:y:2006:i:1:p:121-147. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karin Heffel Steele) or (Red Ng).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.