Relational governance and opportunism in logistics outsourcing relationships: Empirical evidence from China

International Journal of Production Research

Volumn 50, Issue 9, 2012, Pages 2501-2514

  Lai, Fujun ^a,b   Tian, Yu ^c   Huo, Baofeng ^d,e  

^a SOUTHWESTERN UNIVERSITY OF FINANCE AND ECONOMICS   (China)

^b UNIVERSITY OF SOUTHERN MISSISSIPPI   (United States)

^c SUN YAT SEN UNIVERSITY   (China)

^d XI'AN JIAOTONG UNIVERSITY   (China)

^e CHINESE UNIVERSITY OF HONG KONG   (Hong Kong)

Author keywords

China; Logistics outsourcing; Opportunism; Relational norms; Trust; Uncertainty

Indexed keywords

CHINA; LOGISTICS OUTSOURCING; OPPORTUNISM; RELATIONAL NORMS; TRUST; UNCERTAINTY;

COMPETITION;

OUTSOURCING;

EID: 84864403699     PISSN: 00207543     EISSN: 1366588X     Source Type: Journal    
DOI: 10.1080/00207543.2011.581011     Document Type: Article

References (84)

1. Achrol, R. S. and Gundlach, G. T., 1999. Legal and social safeguards against opportunism in exchange. Journal of Retailing, 75(1), 107-124.
2. Anderson, E., 1988. Transaction costs as determinants of opportunism in integrated and independent sales forces. Journal of Economic Behavior and Organizations, 9(3), 247-264.
3. Anderson, E. and Weitz, B. A., 1986. Make-or-buy decisions: vertical integration and marketing productivity. Sloan Management Review, 27(3), 3-19.
4. Anderson, J. C. and Narus, J. A., 1990. A model of distributor firm and manufacturer firm working partnerships. Journal of Marketing, 54(1), 42-58.
5. Armstrong, J. S. and Overton, T. S., 1977. Estimating nonresponse bias in mail surveys. Journal of Marketing Research, 14(3), 396-402.
6. Barney, J. B. and Hansen, M. H., 1994. Trustworthiness as a source of competitive advantage. Strategic Management Journal, 15(8), 175-190.
7. Baron, R. M. and Kenny, D. A., 1986. The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173-1182.
8. Barthelemy, J. and Quelin, B. V., 2006. Complexity of outsourcing contracts and ex post transaction costs: an empirical investigation. Journal of Management Studies, 43(8), 1775-1797.
9. Bettenhausen, K. and Murnigham, J. K., 1991. The development of an inter-group norm and the effect of interpersonal and structural challenges. Administrative Science Quarterly, 36(1), 20-36.
10. Brown, J. R., Dev, C. S., and Lee, D., 2000. Managing marketing channel opportunism: the efficacy of alternative governance mechanisms. Journal of Marketing, 64(2), 51-65.
11. Brown, S. L. and Eisenhardt, K. M., 1995. Product development: past research, present findings, and future directions. Academy of Management Review, 20(2), 343-378.
12. Carte, T. A. and Russell, C. J., 2003. In pursuit of moderation: nine common errors and their solutions. MIS Quarterly, 27(3), 479-501.
13. Chin, W. W., 1998. The partial least squares approach to structural equation modeling. In: G. A. Marcoulides, ed. Modern methods for business research. Mahwah, NJ: Erlbaum, 295-336.
14. Chin, W. W., Marcolin, B. L., and Newsted, P. R., 2003. A partial least squares latent variable modeling approach for measuring interaction effects: results from a monte carlo simulation study and an electronic-mail emotion/adoption study. Information Systems Research, 14(2), 189-217.
15. Claro, D. P., Hagelaar, G., and Omta, O., 2003. The determinants of relational governance and performance: how to manage business relationships? Industrial Marketing Management, 32(8), 703-716. (Pubitemid 37449850)
16. Cohen, J., 1988. Statistical power analysis for the behavioral sciences. 2nd ed. Mahwah, NJ: Erlbaum.
17. Corsten, D. and Kumar, N., 2005. Do suppliers benefit from collaborative relationships with large retailers? An empirical investigation of efficient consumer response adoption. Journal of Marketing, 69(3), 80-94. (Pubitemid 41017929)
18. Delios, A. and Henisz, W., 2000. Japanese firms' investment strategies in emerging economies. Academy of Management Journal, 43(3), 305-323.
19. Deutsch, M., 1958. Trust and suspicious. The Journal of Conflict Resolution, 2(4), 265-279.
20. Dixit, A. K. and Pindyck, R. S., 1994. Investment under uncertainty. Princeton, NJ: Princeton University Press.
21. Doney, P. M. and Cannon, J. P., 1997. An examination of the nature of trust in buyer-seller relationships. Journal of Marketing Research, 61(2), 35-51.
22. Dwyer, Schurr, P. F. and Oh, S., 1987. Developing buyer-seller relationships. Journal of Marketing, 51(4), 11-27.
23. Dyer, G. 2009. China becomes third largest economy, Financial Times, 01/14/2009.
24. Dyer, J., 1997. Effective inter-firm collaboration: how firms minimize transaction costs and maximize transaction value. Strategic Management Journal, 18(7), 535-556. (Pubitemid 127467810)
25. Dyer, J. H. and Chu, W., 2000. The determinants of trust in supplier-automaker relationships in the US, Japan, and Korea. Journal of International Business Studies, 31(2), 259-285.
26. Fock, H. K. Y. and Woo, K. S., 1998. The China market: strategic implications of guanxi. Business Strategy Review, 9(3), 33-43.
27. Fornell, C. and Larcker, D. F., 1981. Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.
28. Fukuyama, F., 1995. Trust: the social virtues and the creation of prosperity. New York: Free Press.
29. Ganesan, S., 1994. Determinants of long-term orientation in buyer-seller relationships. Journal of Marketing, 58(2), 1-19.
30. Gefen, D. and Straub, D., 2005. A practical guide to factorial validity using PLS-graph: tutorial and annotated example. Communications of AIS, 16, 91-109.
31. Gencturk, E. F. and Aulakh, P. S., 2007. Norms-and control-based governance of international manufacturer-distributor relational exchanges. Journal of International Marketing, 15(1), 92-126.
32. Ghoshal, S. and Moran, P., 1996. Bad for practice: a critique of the transaction cost theory. Academy of Management Review, 21(1), 13-47.
33. Gu, F. F., Hung, K., and Tse, D. K., 2008. When does guanxi matter? Issues of capitalization and its dark sides. Journal of Marketing, 72(4), 12-28.
34. Gulati, R., Khanna, T., and Nohria, N., 1994. Unilateral commitments and the importance of process in alliances. Sloan Management Review, 35(3), 61-69.
35. Gundlach, G. T. and Achrol, R. S., 1993. Governance in exchange: contract law and its alternatives. Journal of Policy and Marketing, 12(2), 141-155.
36. Heide, J. B. and John, G., 1992. Do norms matter in marketing relationships? Journal of Marketing, 56(2), 32-44.
37. Hill, C. W. L., 1990. Cooperation, opportunism, and the invisible hand: implications for transaction cost theory. Academy of Management Review, 15(3), 500-513.
38. Hult, G. T. M., Ketchen, D. J., and Slater, S. F., 2004. Information processing, knowledge development, and strategic supply chain performance. Academy of Management Journal, 47(2), 241-253. (Pubitemid 38845939)
39. James, L. R., Mulaik, S. A., and Brett, J. M., 2006. A tale of two methods. Organizational Research Methods, 9(2), 233-244. (Pubitemid 43907722)
40. Jap, S. D. and Anderson, E., 2003. Safeguarding interorganizational performance and continuity under ex post opportunism. Management Science, 49(12), 1684-1701.
41. Jap, S. D. and Ganesan, S., 2000. Control mechanisms and the relationship life cycle: implications for safeguarding specific investment and developing commitment. Journal of Marketing Research, 37(2), 227-245.
42. Jaworski, B. J. and Kohli, A., 1993. Market orientation: antecedents and consequences. Journal of Marketing, 57(3), 53-70.
43. Joshi, A. W. and Stump, R. L., 1999. Determinants of commitment and opportunism: integrating and extending insights. Canadian Journal of Administrative Sciences, 16(4), 334-352.
44. Kogut, B., 1989. The stability of joint ventures: reciprocity and competitive rivalry. Journal of Industrial Economics, 38(2), 183-198.
45. Lai, F., et al., 2008. The information technology capability of third-party logistics providers: a resource-based view and empirical evidence from China. Journal of Supply Chain Management, 44(3), 22-38.
46. Lee, S. Y., 2007. Structural equation modeling: a Bayesian approach. Chichester, UK: Wiley.
47. Lee, Y. and Cavusgil, S. T., 2006. Enhancing alliance performance: the effects of contractual-based versus relational-based governance. Journal of Business Research, 59(8), 896-905. (Pubitemid 43905936)
48. Liang, H., et al., 2007. Assimilation of enterprise systems: the effect of institutional pressures and the mediating role of top management. MIS Quarterly, 31(1), 59-87. (Pubitemid 46382518)
49. Luo, Y., 2007. Are joint venture partners more opportunistic in a more volatile environment? Strategic Management Journal, 28(1), 39-60. (Pubitemid 46065919)
50. MacKinnon, D. P., Lockwood, C. M., and Williams, J., 2004. Confidence limits for the indirect effect: distribution of the product and resampling methods. Multivariate Behavioral Research, 39(1), 99-128. (Pubitemid 38882481)
51. Macneil, I. R., 1980. The new social contract: an inquiry into modern contractual relations. New Haven, CT: Yale University Press.
52. Macneil, I. R., 2000. Relational contract theory: challenges and queries. Northwestern University Law Review, 94(3), 877-907.
53. Maloni, M. J. and Carter, C. R., 2006. Opportunities for research in third-party logistics. Transportation Journal, 45(2), 23-38. (Pubitemid 44028065)
54. Mayer, R. C., Davis, J. H., and Schoorman, F. D., 1995. An integrative model of organization trust. Academy of Management Review, 20(3), 709-734.
55. Moorman, C. and Slotegraaf, R. J., 1999. The contingency value of complementary capabilities in product development. Journal of Marketing Research, 36(2), 239-257.
56. Morgan, R. M. and Hunt, S. D., 1994. The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3), 20-38.
57. Nunnally, J. C. and Bernstein, I. H., 1994. Psychometric theory. 3rd ed. New York: McGraw-Hill.
58. Parkhe, A., 1998. Understanding trust in international alliance. Journal of World Business, 33(4), 219-240.
59. Pavlou, P. A. and Fygenson, M., 2006. Understanding and predicting electronic commerce adoption: an extension of the theory of planned behavior. MIS Quarterly, 30(1), 115-143. (Pubitemid 44971427)
60. Pavlou, P. A. and Gefen, D., 2005. Psychological contract violation in online marketplaces: antecedents, consequences, and moderating role. Information Systems Research, 16(4), 372-399. (Pubitemid 43011648)
61. Pavlou, P. A., Liang, H., and Xue, Y., 2007. Understanding and mitigating uncertainty in online exchange relationships: a principal-agent perspective. MIS Quarterly, 31(1), 105-136.
62. Podsakoff, P. M., et al., 2003. Common method biases in behavioral research: a critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879-903. (Pubitemid 37239703)
63. Porter, M. E., 1991. Towards a dynamic theory of strategy. Strategic Management Journal, 12(S2), 95-117.
64. Ryu, S. and Eyuboglu, N., 2007. The environment and its impact on satisfaction with supplier performance: an investigation of the mediating effects of control mechanisms from the perspective of the manufacturer in the USA. Industrial Marketing Management, 36(4), 458-469.
65. Sahay, B. S., 2003. Understanding trust in supply chain relationships. Industrial Management Data Systems, 103(8), 553-563.
66. Selnes, F., 1998. Antecedents and consequences of trust and satisfaction in buyer-seller relationships. European Journal of Marketing, 32(3/4), 305-322.
67. Selviaridis, K. and Spring, M., 2007. Third party logistics: a literature review and research agenda. International Journal of Logistics Management, 18(1), 125-150.
68. Shrout, P. E. and Bolger, N., 2002. Mediation in experimental and nonexperimental studies: new procedures and recommendations. Psychological Methods, 7(4), 422-445.
69. Sobel, M. E., 1982. A sympototic intervals for indirect effects in structural equations models. In: S. Leinhard, ed. Sociological methodology. San Francisco: Jossey-Bass, 290-312.
70. Sobel, M. E., 1988. Direct and indirect effect in leaner structural equation models. In: J. S. Long, ed. Common problems/proper solutions: avoiding error in quantitative research. Beverly Hills, CA: Sage, 46-64.
71. Sohn, J. H. D., 1994. Social knowledge as a control system: a proposition and evidence from the Japanese fdi behavior. Journal of International Business Studies, 25(2), 295-324.
72. Tian, Y., Lai, F., and Daniel, F., 2008. An examination of the nature of trust in logistics outsourcing relationship: empirical evidence from China. Industrial Management and Data Systems, 108(3), 346-367. (Pubitemid 351391081)
73. Vaidyanathan, G., 2005. A framework for evaluating third-party logistics. Communications of the ACM, 48(1), 89-94. (Pubitemid 40493431)
74. Wang, Q., et al., 2006. Strategic postures of third-party logistics providers in mainland China. International Journal of Physical Distribution and Logistics Management, 36(9), 793-819. (Pubitemid 44704573)
75. Wang, Q., et al., 2008. A comparative study on third-party logistics in mainland China and Hong Kong. Transportation Journal, 47(3), 48-58.
76. Williamson, O. E., 1985. The economic institutions of capitalism. New York: The Free Press.
77. Williamson, O. E., 1993. Opportunism and its critics. Managerial and Decision Economics, 14(2), 97-107.
78. Wu, F., et al., 2007. Overcoming export manufacturers' dilemma in international expansion. Journal of International Business Studies, 38(2), 283-302.
79. Wuyts, S. and Geyskens, I., 2005. The formation of buyer-supplier relationships: detailed contract drafting and close partner selection. Journal of Marketing, 69(4), 103-117. (Pubitemid 41504941)
80. Yeung, I. Y. M. and Tung, R. L., 1996. Achieving business success in Confucian societies: the importance of guanxi (connections). Organizational Dynamics, 25(2), 54-65.
81. Zhang, C., Cavusgil, S. T., and Roath, A. S., 2003. Manufacturer governance of foreign distributor relationships: do relational norms enhance competitiveness in the export market? Journal of International Business Studies, 34(6), 550-566. (Pubitemid 38042027)
82. Zhao, X., Flynn, B. B., and Roth, A. V., 2006. Decision sciences research in China: a critical review and research agenda-foundations and overview. Decision Sciences, 37(4), 451-496. (Pubitemid 44893169)
83. Zhao, X., Flynn, B. B., and Roth, A. V., 2007. Decision sciences research in China: current status, opportunities, and propositions for research in supply chain management, logistics, and quality management. Decision Sciences, 38(1), 39-80.
84. Zhao, X. D., et al., 2008. The impact of power and relationship commitment on the integration between manufacturers and customers in a supply chain. Journal of Operations Management, 26(3), 368-388.