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Effects of external uncertainties and power on opportunism in supply chains: evidence from China

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  • Zhiqiang Wang
  • Baofeng Huo
  • Yu Tian
  • Zhongsheng Hua

Abstract

This study examines the determinants of opportunism in supply chain relationships in emerging markets. Drawing on transaction cost theory and resource dependence theory, we propose that external uncertainties (environmental uncertainty and legal unprotectability) influence opportunism through power (coercive and non-coercive). The results, based on 240 companies in China, indicate that environmental uncertainty enhances supplier opportunism directly and indirectly through the buyer’s use of coercive power over the supplier, while legal unprotectability enhances supplier opportunism directly, but reduces it indirectly through the buyer’s use of non-coercive power. While buyer coercive power increases supplier opportunism, buyer non-coercive power decreases it.

Suggested Citation

  • Zhiqiang Wang & Baofeng Huo & Yu Tian & Zhongsheng Hua, 2015. "Effects of external uncertainties and power on opportunism in supply chains: evidence from China," International Journal of Production Research, Taylor & Francis Journals, vol. 53(20), pages 6294-6307, October.
    • Handle: RePEc:taf:tprsxx:v:53:y:2015:i:20:p:6294-6307
    DOI: 10.1080/00207543.2015.1053578
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    Cited by:

    1. 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.
    2. Yongmei Xu & Jiho Yoon & Myung Kyo Kim & Chwen Sheu, 2018. "Toward Supply Chain Sustainability: Governance and Implementation of Joint Sustainability Development," Sustainability, MDPI, vol. 10(5), pages 1-26, May.
    3. Yang, Qian & Geng, Ruoqi & Jiang, Yisa & Feng, Taiwen, 2021. "Governance mechanisms and green customer integration in China: The joint effect of power and environmental uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    4. Zhang, Man & Merchant, Hemant, 2020. "A causal analysis of the role of institutions and organizational proficiencies on the innovation capability of Chinese SMEs," International Business Review, Elsevier, vol. 29(2).
    5. Zhang, Man & Hartley, Janet L., 2018. "Guanxi, IT systems, and innovation capability: The moderating role of proactiveness," Journal of Business Research, Elsevier, vol. 90(C), pages 75-86.
    6. Li, Siyu & Zhao, Xiande & Huo, Baofeng, 2018. "Supply chain coordination and innovativeness: A social contagion and learning perspective," International Journal of Production Economics, Elsevier, vol. 205(C), pages 47-61.

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