IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v145y2022icp21-34.html
   My bibliography  Save this article

Unequal participation in joint new product development: The roles of information opportunism concern and contract binding force

Author

Listed:
  • Wang, Qingtao
  • Li, Julie Juan
  • Yang, Defeng

Abstract

Partners involved in joint new product development may not participate and/or contribute equally. This study identifies two types of unequal participation: unequal participation due to passive opportunism (i.e., unequal information participation) and unequal participation due to the nature of the business transaction (i.e., unequal co-developer participation). This study further examines how unequal participation may lead to joint new product development inefficiency due to concerns about information opportunism (i.e., about information collection and unauthorized use) and contract binding force. Empirical results from 400 matched channel cooperative dyads in China reveal that both unequal information participation and unequal co-developer participation hinder value co-creation. In addition, concern about information opportunism strengthens the negative effects of unequal participation on value co-creation. Furthermore, we find that the moderating effect of information opportunism concern is less likely to be negative when contract binding force is greater. These findings provide novel insights for managing inter-firm value co-creation in joint new product development.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:jbrese:v:145:y:2022:i:c:p:21-34
    DOI: 10.1016/j.jbusres.2022.02.033
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296322001540
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2022.02.033?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Paul R. Carlile & Eric S. Rebentisch, 2003. "Into the Black Box: The Knowledge Transformation Cycle," Management Science, INFORMS, vol. 49(9), pages 1180-1195, September.
    2. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    3. Steven Tadelis & Oliver E.Williamson, 2012. "Transaction Cost Economics [The Handbook of Organizational Economics]," Introductory Chapters,, Princeton University Press.
    4. 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.
    5. Kevin Zheng Zhou & Dean Xu, 2012. "How foreign firms curtail local supplier opportunism in China: Detailed contracts, centralized control, and relational governance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(7), pages 677-692, September.
    6. Douglass C. North, 1990. "A Transaction Cost Theory of Politics," Journal of Theoretical Politics, , vol. 2(4), pages 355-367, October.
    7. Yadong Luo, 2005. "Transactional characteristics, institutional environment and joint venture contracts," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(2), pages 209-230, March.
    8. Julie Juan Li & Laura Poppo & Kevin Zheng Zhou, 2010. "Relational mechanisms, formal contracts, and local knowledge acquisition by international subsidiaries," Strategic Management Journal, Wiley Blackwell, vol. 31(4), pages 349-370, April.
    9. Oliver E. Williamson, 1993. "Contested Exchange versus the Governance of Contractual Relations," Journal of Economic Perspectives, American Economic Association, vol. 7(1), pages 103-108, Winter.
    10. Laurence Ashworth & Clinton Free, 2006. "Marketing Dataveillance and Digital Privacy: Using Theories of Justice to Understand Consumers’ Online Privacy Concerns," Journal of Business Ethics, Springer, vol. 67(2), pages 107-123, August.
    11. Stephen L. Vargo & Robert F. Lusch, 2016. "Institutions and axioms: an extension and update of service-dominant logic," Journal of the Academy of Marketing Science, Springer, vol. 44(1), pages 5-23, January.
    12. 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.
    13. Keith G. Provan & Jule B. Gassenheimer, 1994. "Supplier Commitment In Relational Contract Exchanges With Buyers: A Study Of Interorganizational Dependence And Exercised Power," Journal of Management Studies, Wiley Blackwell, vol. 31(1), pages 55-68, January.
    14. Ertimur, Burçak & Venkatesh, Alladi, 2010. "Opportunism in co-production: Implications for value co-creation," Australasian marketing journal, Elsevier, vol. 18(4), pages 256-263.
    15. Morgan, Todd & Anokhin, Sergey Alexander & Wincent, Joakim, 2019. "New service development by manufacturing firms: Effects of customer participation under environmental contingencies," Journal of Business Research, Elsevier, vol. 104(C), pages 497-505.
    16. Wang, Liwen & Jin, Jason Lu & Zhou, Kevin Zheng & Li, Caroline Bingxin & Yin, Eden, 2020. "Does customer participation hurt new product development performance? Customer role, product newness, and conflict," Journal of Business Research, Elsevier, vol. 109(C), pages 246-259.
    17. Frédéric Le Roy & Wojciech Czakon, 2016. "Managing coopetition: the missing link between strategy and performance," Post-Print hal-02012534, HAL.
    18. Yadong Luo, 2006. "Opportunism in Inter-firm Exchanges in Emerging Markets," Management and Organization Review, International Association of Chinese Management Research, vol. 2(1), pages 121-147, March.
    19. Daniel C Bello & Nicholas C Williamson, 1985. "Contractual Arrangement and Marketing Practices in the Indirect Export Channel," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 16(2), pages 65-82, June.
    20. Chatterjee, Patrali, 2004. "Interfirm alliances in online retailing," Journal of Business Research, Elsevier, vol. 57(7), pages 714-723, July.
    21. Bai, Xuan & Wang, Qingtao & Sheng, Shibin & Li, Julie Juan, 2021. "Cross-level interpersonal ties and IJV innovation: Evidence from China," Journal of Business Research, Elsevier, vol. 134(C), pages 618-630.
    22. Nicolai J. Foss & Kenneth Husted & Snejina Michailova, 2010. "Governing Knowledge Sharing in Organizations: Levels of Analysis, Governance Mechanisms, and Research Directions," Journal of Management Studies, Wiley Blackwell, vol. 47(3), pages 455-482, May.
    23. Luo, Yadong, 2006. "Opportunism in Inter-firm Exchanges in Emerging Markets[1]," Management and Organization Review, Cambridge University Press, vol. 2(1), pages 121-147, March.
    24. Wu, Ing-Long & Chuang, Cheng-Hung & Hsu, Chien-Hua, 2014. "Information sharing and collaborative behaviors in enabling supply chain performance: A social exchange perspective," International Journal of Production Economics, Elsevier, vol. 148(C), pages 122-132.
    25. 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.
    26. of England, Bank, 2016. "Markets and operations," Bank of England Quarterly Bulletin, Bank of England, vol. 56(4), pages 212-221.
    27. Duffy, John & Ochs, Jack, 2009. "Cooperative behavior and the frequency of social interaction," Games and Economic Behavior, Elsevier, vol. 66(2), pages 785-812, July.
    28. Fuller, Christie M. & Simmering, Marcia J. & Atinc, Guclu & Atinc, Yasemin & Babin, Barry J., 2016. "Common methods variance detection in business research," Journal of Business Research, Elsevier, vol. 69(8), pages 3192-3198.
    29. Soares, Ana Maria & Farhangmehr, Minoo & Shoham, Aviv, 2007. "Hofstede's dimensions of culture in international marketing studies," Journal of Business Research, Elsevier, vol. 60(3), pages 277-284, March.
    30. Shibin Sheng & Kevin Zheng Zhou & Julie Juan Li & Zhaoyang Guo, 2018. "Institutions and opportunism in buyer–supplier exchanges: the moderated mediating effects of contractual and relational governance," Journal of the Academy of Marketing Science, Springer, vol. 46(6), pages 1014-1031, November.
    31. Deeds, David L. & Hill, Charles W. L., 1996. "Strategic alliances and the rate of new product development: An empirical study of entrepreneurial biotechnology firms," Journal of Business Venturing, Elsevier, vol. 11(1), pages 41-55, January.
    32. Julie Juan Li & Laura Poppo & Kevin Zheng Zhou, 2008. "Do managerial ties in China always produce value? Competition, uncertainty, and domestic vs. foreign firms," Strategic Management Journal, Wiley Blackwell, vol. 29(4), pages 383-400, April.
    33. Gary Hamel, 1991. "Competition for competence and interpartner learning within international strategic alliances," Strategic Management Journal, Wiley Blackwell, vol. 12(S1), pages 83-103, June.
    34. Kim, Dong W. & Trimi, Silvana & Hong, Soon G. & Lim, Seongbae, 2020. "Effects of co-creation on organizational performance of small and medium manufacturers," Journal of Business Research, Elsevier, vol. 109(C), pages 574-584.
    35. Sanford J. Grossman & Oliver D. Hart, 1980. "Takeover Bids, the Free-Rider Problem, and the Theory of the Corporation," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pages 42-64, Spring.
    36. Vachon, Stephan & Klassen, Robert D., 2008. "Environmental management and manufacturing performance: The role of collaboration in the supply chain," International Journal of Production Economics, Elsevier, vol. 111(2), pages 299-315, February.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Benoit, Sabine & Wang, Yonggui & Teng, Lefa & Hampson, Daniel P. & Li, Xia, 2022. "Innovation in the sharing economy: A framework and future research agenda," Journal of Business Research, Elsevier, vol. 149(C), pages 207-216.
    2. Wang, Qingtao & Bai, Xuan & Li, Julie Juan, 2023. "Achieving value co-creation through cooperation in international joint ventures: A two-level perspective," International Business Review, Elsevier, vol. 32(1).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Huo, Baofeng & Fu, Dijia & Zhao, Xiande & Zhu, Jingwen, 2016. "Curbing opportunism in logistics outsourcing relationships: The role of relational norms and contract," International Journal of Production Economics, Elsevier, vol. 182(C), pages 293-303.
    2. Wang, Qingtao & Bai, Xuan & Li, Julie Juan, 2023. "Achieving value co-creation through cooperation in international joint ventures: A two-level perspective," International Business Review, Elsevier, vol. 32(1).
    3. Zhao, Danyang & Wang, Longwei & Gu, Flora F., 2021. "Reconsidering network embeddedness: Effects on different forms of opportunism," Journal of Business Research, Elsevier, vol. 131(C), pages 12-24.
    4. Jia, Fang & Wei, Liyuan & Jiang, Ling & Hu, Zuohao & Yang, Zhilin, 2021. "Curbing opportunism in marketing channels: The roles of influence strategy and perceived fairness," Journal of Business Research, Elsevier, vol. 131(C), pages 69-80.
    5. Pei-Li Yu, 2019. "Interfirm coopetition, trust, and opportunism: a mediated moderation model," Review of Managerial Science, Springer, vol. 13(5), pages 1069-1092, November.
    6. Tao Zhang, 2019. "How Do Information Technology Resources Facilitate Relational and Contractual Governance in Green Supply Chain Management?," Sustainability, MDPI, vol. 11(13), pages 1-17, July.
    7. Um, Ki-Hyun & Kim, Sang-Man, 2019. "The effects of supply chain collaboration on performance and transaction cost advantage: The moderation and nonlinear effects of governance mechanisms," International Journal of Production Economics, Elsevier, vol. 217(C), pages 97-111.
    8. Wang, Liwen & Sheng, Shibin & Wu, Shuilong & Zhou, Kevin Zheng, 2017. "Government role, governance mechanisms, and foreign partner opportunism in IJVs," Journal of Business Research, Elsevier, vol. 76(C), pages 98-107.
    9. Selma Kadic-Maglajlic & Claude Obadia & Irena Vida & Matthew J. Robson, 2023. "Moral Categorization of Opportunists in Cross-Border Interfirm Relationships," Journal of Business Ethics, Springer, vol. 188(2), pages 221-238, November.
    10. Chu, Zhaofang & Wang, Qiang & Lai, Fujun & Collins, Brian J., 2019. "Managing interdependence: Using Guanxi to cope with supply chain dependency," Journal of Business Research, Elsevier, vol. 103(C), pages 620-631.
    11. Yadong Luo & Huan Zhang & Juan Bu, 2019. "Developed country MNEs investing in developing economies: Progress and prospect," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 633-667, June.
    12. Yadong Luo & Yi Liu & Jiaqi Xue, 2009. "Relationship Investment and Channel Performance: An Analysis of Mediating Forces," Journal of Management Studies, Wiley Blackwell, vol. 46(7), pages 1113-1137, November.
    13. Lu, Tingyu & Zhuang, Mengzhou & Zhuang, Guijun, 2021. "When does guanxi hurt interfirm cooperation? The moderating effects of institutional development and IT infrastructure capability," Journal of Business Research, Elsevier, vol. 125(C), pages 177-186.
    14. Amankwah-Amoah, Joseph & Debrah, Yaw & Nuertey, Dorcas, 2018. "Institutional Legitimacy, Cross-Border Trade and Institutional Voids: Insights from the Cocoa Industry in Ghana," MPRA Paper 84393, University Library of Munich, Germany.
    15. Dayashankar Maurya & Amit Srivastava, 2022. "Controlling Partner Opportunism in Cross-Sectoral Alliance: Dynamics of Governance Flexibility," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(1), pages 15-28, December.
    16. Huo, Baofeng & Ye, Yuxiao & Zhao, Xiande, 2015. "The impacts of trust and contracts on opportunism in the 3PL industry: The moderating role of demand uncertainty," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 160-170.
    17. Appiah, Gloria & Bonsu, Samuel K. & Sarpong, David, 2021. "The unpowered customer: Co-creation as tactics of the weak," Journal of Business Research, Elsevier, vol. 133(C), pages 317-326.
    18. Yunhui Zhao & Chuanli Zhao & Yi Guo & Hongyan Sheng & Taiwen Feng, 2021. "Green supplier integration and environmental innovation in Chinese firms: The joint effect of governance mechanism and trust," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 169-183, January.
    19. Ruey-Jer ‘Bryan’ Jean & Rudolf R. Sinkovics & Stefan Zagelmeyer, 2018. "Antecedents and Innovation Performance Implications of MNC Political Ties in the Chinese Automotive Supply Chain," Management International Review, Springer, vol. 58(6), pages 995-1026, December.
    20. 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.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:145:y:2022:i:c:p:21-34. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.