Abstract
Building on economic and social exchange theories, this study develops an integrated model in which curtailing opportunism in international joint ventures (IJVs) requires four interrelated sets of suppressing forces: (1) contractual ordering (contractual inclusiveness and contractual obligatoriness); (2) structural ordering (managerial governance and equity captiveness); (3) relational ordering (interparty attachment and boundary-spanner ties); and (4) justice ordering (procedural justice and distributive justice). Using a sample of 192 IJVs in an emerging market, this study finds general support for our theoretical model. Our research validates that countering opportunism involves a system-wide effort that integrates economic and social mandates, unifies ex ante and ex post mechanisms, controls both egoistic and non-egoistic motivations, and combines organizational-level and individual-level forces. For partners from individualist cultures, economic ordering forces (contractual and structural) are stronger than social ordering forces (relational and justice) in relation to opportunism resistance, whereas for partners from a collectivistic culture, social ordering forces are relatively stronger than economic ordering forces for this end.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 855-877 |
| Number of pages | 23 |
| Journal | Journal of International Business Studies |
| Volume | 38 |
| Issue number | 6 |
| DOIs | |
| State | Published - Nov 2007 |
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Keywords
- Control
- Governance
- IJV
- Opportunism
ASJC Scopus subject areas
- Business and International Management
- Business, Management and Accounting(all)
- Economics and Econometrics
- Management of Technology and Innovation
- Strategy and Management
Cite this
An integrated anti-opportunism system in international exchange. / Luo, Yadong.
In: Journal of International Business Studies, Vol. 38, No. 6, 11.2007, p. 855-877.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - An integrated anti-opportunism system in international exchange
AU - Luo, Yadong
PY - 2007/11
Y1 - 2007/11
N2 - Building on economic and social exchange theories, this study develops an integrated model in which curtailing opportunism in international joint ventures (IJVs) requires four interrelated sets of suppressing forces: (1) contractual ordering (contractual inclusiveness and contractual obligatoriness); (2) structural ordering (managerial governance and equity captiveness); (3) relational ordering (interparty attachment and boundary-spanner ties); and (4) justice ordering (procedural justice and distributive justice). Using a sample of 192 IJVs in an emerging market, this study finds general support for our theoretical model. Our research validates that countering opportunism involves a system-wide effort that integrates economic and social mandates, unifies ex ante and ex post mechanisms, controls both egoistic and non-egoistic motivations, and combines organizational-level and individual-level forces. For partners from individualist cultures, economic ordering forces (contractual and structural) are stronger than social ordering forces (relational and justice) in relation to opportunism resistance, whereas for partners from a collectivistic culture, social ordering forces are relatively stronger than economic ordering forces for this end.
AB - Building on economic and social exchange theories, this study develops an integrated model in which curtailing opportunism in international joint ventures (IJVs) requires four interrelated sets of suppressing forces: (1) contractual ordering (contractual inclusiveness and contractual obligatoriness); (2) structural ordering (managerial governance and equity captiveness); (3) relational ordering (interparty attachment and boundary-spanner ties); and (4) justice ordering (procedural justice and distributive justice). Using a sample of 192 IJVs in an emerging market, this study finds general support for our theoretical model. Our research validates that countering opportunism involves a system-wide effort that integrates economic and social mandates, unifies ex ante and ex post mechanisms, controls both egoistic and non-egoistic motivations, and combines organizational-level and individual-level forces. For partners from individualist cultures, economic ordering forces (contractual and structural) are stronger than social ordering forces (relational and justice) in relation to opportunism resistance, whereas for partners from a collectivistic culture, social ordering forces are relatively stronger than economic ordering forces for this end.
KW - Control
KW - Governance
KW - IJV
KW - Opportunism
UR - http://www.scopus.com/inward/record.url?scp=35448974961&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=35448974961&partnerID=8YFLogxK
U2 - 10.1057/palgrave.jibs.8400300
DO - 10.1057/palgrave.jibs.8400300
M3 - Article
AN - SCOPUS:35448974961
VL - 38
SP - 855
EP - 877
JO - Journal of International Business Studies
JF - Journal of International Business Studies
SN - 0047-2506
IS - 6
ER -