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Reducing distributor opportunism in the export market: Effects of monitoring mechanisms, norm-based information exchange, and market orientation

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  • Ju, Min
  • Murray, Janet Y.
  • Kotabe, Masaaki
  • Gao, Gerald Yong
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    Abstract

    As monitoring mechanisms are critical to exporter-distributor relationships, the effectiveness of different types of monitoring mechanisms remains an important issue. Our study goes beyond the separate effects of monitoring mechanisms on opportunism, and tests the moderating effects of market orientation (MO) and norm-based information exchange on the monitoring mechanism-opportunism relationship. Based on survey data of 160 export ventures in China, we find that process control increases distributor opportunism, while norm-based information exchange and MO decrease it. Moreover, at high levels of norm-based information exchange and MO, the impact of process control on opportunism turns from positive to negative.

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    File URL: http://www.sciencedirect.com/science/article/pii/S1090951610000660
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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 46 (2011)
    Issue (Month): 4 (October)
    Pages: 487-496

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    Handle: RePEc:eee:worbus:v:46:y:2011:i:4:p:487-496

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    Related research

    Keywords: Opportunism Process control Output control Market orientation Norm-based information exchange;

    References

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    1. John W Cadogan & Adamantios Diamantopoulos & Charles Pahud de Mortanges, 1999. "A Measure of Export Market Orientation: Scale Development and Cross-cultural Validation," Journal of International Business Studies, Palgrave Macmillan, vol. 30(4), pages 689-707, December.
    2. Constantine S Katsikeas & Dionysis Skarmeas & Daniel C Bello, 2009. "Developing successful trust-based international exchange relationships," Journal of International Business Studies, Palgrave Macmillan, vol. 40(1), pages 132-155, January.
    3. Yadong Luo, 2007. "An integrated anti-opportunism system in international exchange," Journal of International Business Studies, Palgrave Macmillan, vol. 38(6), pages 855-877, November.
    4. 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.
    5. John W Cadogan & Adamantios Diamantopoulos & Judy A Siguaw, 2002. "Export Market-oriented Activities: Their Antecedents and Performance Consequences," Journal of International Business Studies, Palgrave Macmillan, vol. 33(3), pages 615-626, September.
    6. Kevin Zheng Zhou & Laura Poppo & Zhilin Yang, 2008. "Relational ties or customized contracts? An examination of alternative governance choices in China," Journal of International Business Studies, Palgrave Macmillan, vol. 39(3), pages 526-534, April.
    7. Bello, Daniel C. & Chelariu, Cristian & Zhang, Li, 2003. "The antecedents and performance consequences of relationalism in export distribution channels," Journal of Business Research, Elsevier, vol. 56(1), pages 1-16, January.
    8. Fang Wu & Rudolf R Sinkovics & S Tamer Cavusgil & Anthony S Roath, 2007. "Overcoming export manufacturers’ dilemma in international expansion," Journal of International Business Studies, Palgrave Macmillan, vol. 38(2), pages 283-302, March.
    9. Preet S Aulakh & Masaaki Kotabe & Arvind Sahay, 1996. "Trust and Performance in Cross-Border Marketing Partnerships: A Behavioral Approach," Journal of International Business Studies, Palgrave Macmillan, vol. 27(4), pages 1005-1032, December.
    10. Preet S Aulakh & Masaaki Kotabe & Arvind Sahay, 1996. "Trust and Performance in Cross-Border Marketing Partnerships: A Behavioral Approach," Journal of International Business Studies, Palgrave Macmillan, vol. 27(5), pages 1005-1032, December.
    11. 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.
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