Curbing opportunism in logistics outsourcing relationships: The role of relational norms and contract

International Journal of Production Economics

Volumn 182, Issue , 2016, Pages 293-303

  Huo, Baofeng ^a   Fu, Dijia ^a   Zhao, Xiande ^b   Zhu, Jingwen ^c  

^a ZHEJIANG UNIVERSITY   (China)

^b CHINA EUROPE INTERNATIONAL BUSINESS SCHOOL   (China)

^c XI'AN JIAOTONG UNIVERSITY   (China)

Author keywords

China; Contracts; Logistics outsourcing; Opportunism; Relational norms

Indexed keywords

COMPETITION; CONTRACTS; ECONOMICS;

CHINA; LOGISTICS OUTSOURCING; MANAGERIAL IMPLICATIONS; OPPORTUNISM; RELATIONAL NORMS; RELATIONSHIP MANAGEMENT; THIRD PARTY LOGISTICS (3PL); TRANSACTION COST ECONOMICS;

OUTSOURCING;

EID: 84987973372     PISSN: 09255273     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ijpe.2016.07.005     Document Type: Article

References (98)

1. Achrol, R.S., Gundlach, G.T., Legal and social safeguards against opportunism in exchange. J. Retail. 75:1 (1999), 107–124.
2. Anderson, J.C., Gerbing, D.W., Structural equation modeling in practice: a review and recommended two-step approach. Psychol. Bull., 103(3), 1988, 411.
3. Antia, K.D., Frazier, G.L., The severity of contract enforcement in interfirm channel relationships. J. Mark. 65:4 (2001), 67–81.
4. Armstrong, J.S., Overton, T.S., Estimating nonresponse bias in mail surveys. J. Mark. Res. 14:3 (1977), 396–402.
5. Aulakh, P.S., Kotabe, M., Sahay, A., Trust and performance in cross-border marketing partnerships: a behavioral approach. J. Int. Bus. Stud. 27:5 (1996), 1005–1032.
6. Barthélemy, J., Quélin, B.V., Complexity of outsourcing contracts and ex post transaction costs: an empirical investigation. J. Manag. Stud. 43:8 (2006), 1775–1797.
7. 1 Baumol W.J. Williamson O.E., 1985. The economic intstitutions of capitalism, RAND j. Econ. 17 (2), 279–292.
8. Bello, D.C., Gilliland, D.I., The effect of output controls, process controls, and flexibility on export channel performance. J. Mark. 61:1 (1997), 22–38.
9. Benton, W., Maloni, M., The influence of power driven buyer/seller relationships on supply chain satisfaction. J. Oper. Manag. 23:1 (2005), 1–22.
10. Birnberg, J.G., Control in interfirm co-operative relationships. J. Manag. Stud. 35:4 (1998), 421–428.
11. Cao, Z., Lumineau, F., Revisiting the interplay between contractual and relational governance: a qualitative and meta-analytic investigation. J. Oper. Manag. 33–34 (2015), 15–42.
12. Carr, A.S., Pearson, J.N., Strategically managed buyer-supplier relationships and performance outcomes. J. Oper. Manag. 17:5 (1999), 497–519.
13. Chau, P.Y.K., Reexamining a model for evaluating information center success using a structural equation modeling approach. Decis. Sci. 28:2 (1997), 309–334.
14. Chen, I.J., Paulraj, A., Understanding supply chain management: Critical research and a theoretical framework. Int. J. Prod. Res. 42:1 (2004), 131–163.
15. Cropanzano, R., Mitchell, M.S., Social exchange theory: an interdisciplinary review. J. Manag. 31:6 (2005), 874–900.
16. Crosno, J.L., Dahlstrom, R., A meta-analytic review of opportunism in exchange relationships. J. Acad. Mark. Sci. 36:2 (2008), 191–201.
17. Crosno, J.L., Manolis, C., Dahlstrom, R., Toward understanding passive opportunism in dedicated channel relationships. Mark. Lett. 24:4 (2013), 353–368.
18. Dahlstrom, R., Nygaard, A., An empirical investigation of ex post transaction costs in franchised distribution channels. J. Mark. Res. 36:2 (1999), 160–170.
19. Das, T.K., Bing-Sheng, T., Between trust and control: developing confidence in partner cooperation in alliances. Acad. Manag. Rev. 23:3 (1998), 491–512.
20. Dwyer, F.R., Schurr, P.H., Oh, S., Developing buyer-seller relationships. J. Mark. 51:2 (1987), 11–27.
21. Ellickson, R.C., A critique of economic and sociological theories of social control. J. Leg. Stud. 16:1 (1987), 67–99.
22. Faems, D., Janssens, M., Madhok, A., Van Looy, B., Toward an integrative perspective on alliance governance: connecting contract design, trust dynamics, and contract application. Acad. Manag. J. 51:6 (2008), 1053–1078.
23. Flynn, B.B., Schroeder, R.G., Sakakibara, S., A framework for quality management research and an associated measurement instrument. J. Oper. Manag. 11:4 (1994), 339–366.
24. Fornell, C., Larcker, D.F., Evaluating structural equation models with unobservable variables and measurement error. J. Mark. Res. 18:1 (1981), 39–50.
25. Ganesan, S., Determinants of long-term orientation in buyer-seller relationships. J. Mark. 58:2 (1994), 1–19.
26. Garver, M.S., Mentzer, J.T., Logistics research methods: employing structural equation modeling to test for construct validity. J. Bus. Logist. 20:1 (1999), 33–58.
27. Griffith, D.A., Myers, M.B., The performance implications of strategic fit of relational norm governance strategies in global supply chain relationships. J. Int. Bus. Stud. 36:3 (2005), 254–269.
28. Gulati, R., Social structure and alliance formation patterns: a longitudinal analysis. Adm. Sci. Q. 40:4 (1995), 619–652.
29. Hamel, G., Competition for competence and interpartner learning within international strategic alliances. Strat. Manag. J. 12:S1 (1991), 83–103.
30. Handley, S.M., Benton, W. Jr, The influence of exchange hazards and power on opportunism in outsourcing relationships. J. Oper. Manag. 30:1 (2012), 55–68.
31. Hartmann, E., de Grahl, A., The flexibility of logistics service providers and its impact on customer loyalty: an empirical study. J. Supply Chain Manag. 47:3 (2011), 63–85.
32. Hawkins, T.G., Lewin, J.E., Amos, C., The influence of leader opportunism in B2B exchange. J. Bus. Res. 65:8 (2012), 1112–1118.
33. Heide, J.B., Interorganizational governance in marketing channels. J. Mark. 58:1 (1994), 71–85.
34. Heide, J.B., John, G., Do norms matter in marketing relationships?. J. Mark. 56:2 (1992), 32–44.
35. Hochwarter, W.A., James, M., Johnson, D., Ferris, G.R., The interactive effects of politics perceptions and trait cynicism on work outcomes. J. Leadersh. Organ. Stud. 10:4 (2004), 44–57.
36. Hofstede, G., Culture's Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations. 2001, Sage Publications, Inc., Thousand Oaks, CA.
37. Hu, L., Bentler, P.M., Kano, Y., Can test statistics in covariance structure analysis be trusted?. Psychol. Bull. 112:2 (1992), 351–362.
38. Huo, B.F., Ye, Y.X., Zhao, X.D., The impacts of trust and contracts on opportunism in the 3PL industry: the moderating role of demand uncertainty. Int. J. Prod. Econ. 170 (2015), 160–170.
39. Jap, S.D., Anderson, E., Safeguarding interorganizational performance and continuity under ex post opportunism. Manag. Sci. 49:12 (2003), 1684–1701.
40. Jap, S.D., Ganesan, S., Control mechanisms and the relationship life cycle: implications for safeguarding specific investments and developing commitment. J. Mark. Res. 37:2 (2000), 227–245.
41. Jaworski, B.J., Stathakopoulos, V., Krishnan, H.S., Control combinations in marketing: conceptual framework and empirical evidence. J. Mark. 57:1 (1993), 57–69.
42. Jiang, X., Li, M., Gao, S., Bao, Y., Jiang, F., Managing knowledge leakage in strategic alliances: the effects of trust and formal contracts. Ind. Mark. Manag. 42:6 (2013), 983–991.
43. John, G., An empirical investigation of some antecedents of opportunism in a marketing channel. J. Mark. Res. 21:3 (1984), 278–289.
44. Jones, G.R., George, J.M., The experience and evolution of trust: implications for cooperation and teamwork. Acad. Manag. Rev. 23:3 (1998), 531–546.
45. Jöreskog, K.G., Sörbom, D., LISREL 8: Structural Equation Modeling with the SIMPLIS Command Language. 1993, Lawrence Erlbaum Associates, Inc., United States.
46. Ju, M., Murray, J.Y., Kotabe, M., Gao, G.Y., Reducing distributor opportunism in the export market: effects of monitoring mechanisms, norm-based information exchange, and market orientation. J. World Bus. 46:4 (2011), 487–496.
47. Kaufmann, P.J., Stern, L.W., Relational exchange norms, perceptions of unfairness, and retained hostility in commercial litigation. J. Confl. Resolut. 32:3 (1988), 534–552.
48. Kessler, J.B., Leider, S., Norms and contracting. Manag. Sci. 58:1 (2012), 62–77.
49. Khanna, T., Gulati, R., Nohria, N., The dynamics of learning alliances: competition, cooperation, and relative scope. Strat. Manag. J. 19:3 (1998), 193–210.
50. Lai, F., Li, D., Wang, Q., Zhao, X., The information technology capability of third-party logistics providers: a resource-based view and empirical evidence from China. J. Supply Chain Manag. 44:3 (2008), 22–38.
51. Lai, F., Tian, Y., Huo, B., Relational governance and opportunism in logistics outsourcing relationships: empirical evidence from China. Int. J. Prod. Res. 50:9 (2012), 2501–2514.
52. Liu, Y., Luo, Y., Liu, T., Governing buyer-supplier relationships through transactional and relational mechanisms: evidence from China. J. Oper. Manag. 27:4 (2009), 294–309.
53. Luo, Y., Contract, cooperation, and performance in international joint ventures. Strat. Manag. J. 23:10 (2002), 903–919.
54. Luo, Y., Opportunism in inter-firm exchanges in emerging markets. Manag. Organ. Rev. 2:1 (2006), 121–147.
55. Luo, Y., Are joint venture partners more opportunistic in a more volatile environment?. Strat. Manag. J., 28(1), 2007, 39.
56. Luo, Y., An integrated anti-opportunism system in international exchange. J. Int. Bus. Stud. 38:6 (2007), 855–877.
57. Lusch, R.F., Brown, J.R., Interdependency, contracting, and relational behavior in marketing channels. J. Mark. 60:4 (1996), 19–38.
58. Macneil, I.R., Contracts: adjustment of long-term economic relations under classical, neoclassical, and relational contract law. Northwest. Univ. Law Rev. 72:6 (1978), 854–905.
59. Macneil, I.R., The New Social Contract: An Inquiry Into Modern Contractual Relations. 1980, Yale University Press, New Haven.
60. Martin, M.M., Rubin, R.B., A new measure of cognitive flexibility. Psychol. Rep. 76:2 (1995), 623–626.
61. Min, S., Mentzer, J.T., Developing and measuring supply chain management concepts. J. Bus. Logist. 25:1 (2004), 63–99.
62. Moorman, C., Deshpande, R., Zaltman, G., Factors affecting trust in market research relationships. J. Mark. 57:1 (1993), 81–101.
63. Morgan, R.M., Hunt, S.D., The commitment-trust theory of relationship marketing. J. Mark. 58:3 (1994), 20–38.
64. Narasimhan, R., Jayaram, J., Causal linkages in supply chain management: an exploratory study of North American manufacturing firms. Decis. Sci. 29:3 (1998), 579–605.
65. Nevin, J.R., Relationship marketing and distribution channels: exploring fundamental issues. J. Acad. Mark. Sci. 23:4 (1995), 327–334.
66. O'Leary-Kelly, S.W., Vokurka, R.J., The empirical assessment of construct validity. J. Oper. Manag. 16:4 (1998), 387–405.
67. Ouchi, W.G., A conceptual framework for the design of organizational control mechanisms. Manag. Sci. 25:9 (1979), 833–848.
68. Pan, Y., Tse, D.K., The hierarchical model of market entry modes. J. Int. Bus. Stud. 31:4 (2000), 535–554.
69. Podsakoff, P.M., MacKenzie, S.B., Lee, J.-Y., Podsakoff, N.P., Common method biases in behavioral research: a critical review of the literature and recommended remedies. J. Appl. Psychol. 88:5 (2003), 879–903.
70. Podsakoff, P.M., Organ, D.W., Self-reports in organizational research: problems and prospects. J. Manag. 12:4 (1986), 531–544.
71. Poppo, L., Zenger, T., Do formal contracts and relational governance function as substitutes or complements?. Strat. Manag. J. 23:8 (2002), 707–725.
72. Power, D., Schoenherr, T., Samson, D., The cultural characteristic of individualism/collectivism: a comparative study of implications for investment in operations between emerging Asian and industrialized Western countries. J. Oper. Manag. 28:3 (2010), 206–222.
73. Raykov, T., Marcoulides, G.A., A First Course in Structural Equation Modeling. 2012, Lawrence Erlbaum, United States.
74. Realo, A., Allik, J., Greenfield, B., Radius of trust Social capital in relation to familism and institutional collectivism. J. Cross-Cult. Psychol. 39:4 (2008), 447–462.
75. Rindfleisch, A., Heide, J.B., Transaction cost analysis: past, present, and future applications. J. Mark. 61:4 (1997), 30–54.
76. Robinson, S.L., Trust and breach of the psychological contract. Adm. Sci. Q. 41:4 (1996), 574–599.
77. Rokkan, A.I., Heide, J.B., Wathne, K.H., Specific investments in marketing relationships: expropriation and bonding effects. J. Mark. Res. 40:2 (2003), 210–224.
78. Steensma, H.K., Marino, L., Weaver, K.M., Dickson, P.H., The influence of national culture on the formation of technology alliances by entrepreneurial firms. Acad. Manag. J. 43:5 (2000), 951–973.
79. Takahashi, N., The emergence of generalized exchange. Am. J. Sociol. 105:4 (2000), 1105–1134.
80. Tangpong, C., Hung, K.T., Ro, Y.K., The interaction effect of relational norms and agent cooperativeness on opportunism in buyer-supplier relationships. J. Oper. Manag. 28:5 (2010), 398–414.
81. Thompson, J.D., Organizations in Action: Social Science Bases of Administrative Theory. 1967, Transaction Publishers, Piscataway.
82. Vaidyanathan, G., A framework for evaluating third-party logistics. Commun. ACM 48:1 (2005), 89–94.
83. Wallenburg, C.M., Schäffler, T., The interplay of relational governance and formal control in horizontal alliances: a social contract perspective. J. Supply Chain Manag. 50:2 (2014), 41–58.
84. Wang, L., Yeung, J.H.Y., Zhang, M., The impact of trust and contract on innovation performance: the moderating role of environmental uncertainty. Int. J. Prod. Econ. 134:1 (2011), 114–122.
85. Wang, Q., Chu, Z., Zhou, Q., Lai, F., A comparative study of third-party logistics in mainland China and Hong Kong. Transp. J. 47:3 (2008), 48–58.
86. Wang, Q., Huo, B., Lai, F., Chu, Z., Understanding performance drivers of third-party logistics providers in mainland China: a replicated and comparative study. Ind. Manag. Data Syst. 110:9 (2010), 1273–1296.
87. Williamson, O.E., Outsourcing: transaction cost economics and supply chain management. J. Supply Chain Manag. 44:2 (2008), 5–16.
88. Wu, F., Sinkovics, R.R., Cavusgil, S.T., Roath, A.S., Overcoming export manufacturers' dilemma in international expansion. J. Int. Bus. Stud. 38:2 (2007), 283–302.
89. Wu, Q., Mu, Y.P., Feng, Y., Coordinating contracts for fresh product outsourcing logistics channels with power structures. Int. J. Prod. Econ. 160 (2015), 94–105.
90. Wuyts, S., Geyskens, I., The formation of buyer-supplier relationships: detailed contract drafting and close partner selection. J. Mark. 69:4 (2005), 103–117.
91. Yang, Q., Zhao, X., Yeung, H.Y.J., Liu, Y., Improving logistics outsourcing performance through transactional and relational mechanisms under transaction uncertainties: evidence from China. Int. J. Prod. Econ. 175 (2016), 12–23.
92. Yao, Y., Dresner, M., Palmer, J.W., Impact of boundary-spanning information technology and position in chain on firm performance. J. Supply Chain Manag. 45:4 (2009), 3–16.
93. Zhang, C., Cavusgil, S.T., Roath, A.S., Manufacturer governance of foreign distributor relationships: do relational norms enhance competitiveness in the export market?. J. Int. Bus. Stud. 34:6 (2003), 550–566.
94. Zhao, X., Huo, B., Flynn, B.B., Yeung, J.H.Y., The impact of power and relationship commitment on the integration between manufacturers and customers in a supply chain. J. Oper. Manag. 26:3 (2008), 368–388.
95. Zhao, Y., Schultz, N.E., Truhlar, D.G., Design of density functionals by combining the method of constraint satisfaction with parametrization for thermochemistry, thermochemical kinetics, and noncovalent interactions. J. Chem. Theory Comput. 2:2 (2006), 364–382.
96. Zhou, K.Z., Poppo, L., Exchange hazards, relational reliability, and contracts in China: the contingent role of legal enforceability. J. Int. Bus. Stud. 41:5 (2010), 861–881.
97. Zhou, K.Z., Poppo, L., Yang, Z., Relational ties or customized contracts? An examination of alternative governance choices in China. J. Int. Bus. Stud. 39:3 (2008), 526–534.
98. Zhou, K.Z., Xu, D., How foreign firms curtail local supplier opportunism in China: detailed contracts, centralized control, and relational governance. J. Int. Bus. Stud. 43:7 (2012), 677–692.