Managing opportunism in a developing interfirm relationship: The interrelationship of calculative and loyalty commitment

This research develops a framework for investigating associations among the duration of an exchange relationship, the interrelationship between a supplier's calculative and loyalty commitment, and opportunistic behavior on the part of a buyer. The findings indicate that (1) calculative commitment and loyalty commitment by suppliers function as substitutes; (2) a supplier's loyalty commitment increases gradually as a developing exchange relationship endures, whereas calculative commitment increases and then decreases; and (3) a supplier's calculative commitment leads to an increase in a buyer's opportunism, whereas the supplier's loyalty commitment leads to a decrease, and a supplier's loyalty commitment decreases the positive impact of calculative commitment on opportunism. These findings provide insights into how relationship duration affects buyers' opportunism through the interrelation between suppliers' calculative and loyalty commitment.     

SBU strategy and performance: The moderating effects of the corporate-SBU relationship

This study suggests that the link between an SBU strategy and performance is moderated by the SBU's relationship with corporate management. Information processing arguments suggest that this relationship, typically characterized by general measures of centralization, has been inappropriately conceptualized in prior research. An alternative view, one that considers which decisions and activities should be controlled by the individual SBU, is proposed and tested. The results of a study of 496 SBUs indicate that SBU performance is enhanced when: (1) SBUs with an external strategic orientation control environmental monitoring activities and strategic decision analysis, and (2) SBUs with an intraorganizational orientation control those activities relating to operations. Weaker SBU performance is associated with SBU control over those functions and activities not central to the SBU's business strategy. Therefore, it is suggested that the corporate-SBU relationship can either facilitate or inhibit the implementation of the SBU's intended strategy.     

Industrial distributor selling: The roles of outside and inside sales

This paper examines the current practice of industrial distributor selling, focusing on the roles played by the outside and inside sales forces. Based on benchmark survey results, the present composition, responsibilities, and compensation programs of outside and inside sales forces are compared and contrasted. Some predictions are given on likely changes in selling practices, drawing upon interviews with managers, and managerial implications of them, are offered.     

Tripartite role of communications in channel relationships: Mitigating exchange hazards,reducing opportunism,and curtailing its ill effects on relationship performance

Mitigating channel members' opportunism is critical for supplier firms to maintain superior channel relationships and sustain relationship performance. Research in marketing channels suggests that supplier-channel member communication is vital for reducing information asymmetry and developing relational bonds in channel relationships. Building on that, in this research, we integrate information asymmetry and relationship-based views to articulate how communication, directly and indirectly, influences channel members' opportunism and curtail its ill effects on relationship performance. Based on the matched data from 239 supplier-distributor dyads, we find that communications (instrumental and social) have tripartite effects on channel outcomes, i.e., a) it directly reduces channel members' opportunism, b) weakens (negatively moderate) the positive effects of exchange hazards (antecedents) on opportunism and c) curtail the ill effects of opportunism on relationship performance. Additionally, we find that instrumental and social communications can have nuanced effects on channel members' opportunism. We provide newer insight into the role of communications in managing channel outcomes and present important theoretical and managerial implications.     

The impact of OEM supplier initiatives on buyer competence development: The moderating roles of collaborative relationship and competitive environment

This paper explains the impact of original equipment manufacturing (OEM) supplier initiatives, which are proactive and deliberate behaviors, on buyer competence development. It argues that these adaptive and proactive behaviors in the outsourcing relationship have a significant impact on buyers’ competence development. The sample population consisted of 800 OEM suppliers in Taiwan. SPSS was used to examine the causal relationships among the variables. The empirical results indicate that OEM supplier initiatives have a positive effect on buyer competence development. In addition, two of three collaborative relationship variables—information sharing and long-term collaboration—foster the relationship between OEM supplier initiatives and buyer competence development. However, the moderating role of competitive environment has a negative effect on this relationship.     

Non-linear relationship between industrial service offering and sales growth: The moderating role of network capabilities

In an effort to approach the mixed findings regarding the relationship between a firm's industrial service offering and its performance, this study analyzes the impact of the industrial service offering on sales growth and the moderating role of network capabilities. The proposed research model is tested based on data from 91 Finnish manufacturing firms. Our results demonstrate a non-linear effect of the service offering on sales growth. We also find that network capabilities enhance the effect of the service offering on sales growth. For managers of manufacturing firms, the results imply that the active development of a comprehensive service offering should be implemented in conjunction with the development of organizational capabilities, such as network capabilities, to create value and promote improved performance.     

The moderating effects of market orientation and launch proficiency on the product advantage-performance relationship

The relationship between product advantage and new product performance has been identified in prior research and cannot be overlooked. However, the moderators between the two constructs have received little attention. This study examines how market orientation and launch proficiency exert contingent influences on the product advantage-performance relationship. Prior research indicates that new product performance is a multi-dimensional concept constituted by different types of performance, yet the way product advantage and its moderators influence certain types of product performance has not been investigated. This study examines the same issues under different dimensions of new product performance. A total of 112 Taiwanese biotechnology firms form the analytical sample. Two interesting findings are revealed. First, product advantage is significantly and positively related to market performance, but has no significant influence on financial performance. Second, market orientation and launch proficiency in tactics indeed moderate the relationship between product advantage and new product performance, either as a whole or in respect to different types of product performance. Obviously, these findings contribute detailed evidence to the theoretical nexus between product advantage and new product performance.     

The effects of environmental focus and program timing on green marketing performance and the moderating role of resource commitment

Should firms adopt sustainable marketing policy and develop green products? Most popular press says yes, but industry remains slow to act upon such initiatives. Drawing upon recent research in the Industrial Marketing Management Sustainability Special Issue, this research investigates the impact of green initiatives on firm performance and how the related commitment of resources impacts the effectiveness of those initiatives. The goal of this paper is to explore the effectiveness of green marketing on firm performance, in terms of financial performance, market performance, and service quality. Further, resource commitment is examined as a possible boundary condition of these relationships. Using multi-source data, the findings suggest that the commitment of proper resources is critical to the success of any green initiative. This study also supports the notion that being the first firm in an industry to initiate a green program provides few tangible benefits. More importantly, even firms with an environmental focus neglect to realize superior performance unless the specific strategy is matched with consistent support from top management.     

Eco-innovation and business performance: the moderating effects of environmental orientation and resource commitment in green-oriented SMEs

Drawing on the eco-innovation and resource-based view, this research attempts to contribute to the eco-innovation-performance debate by examining the effects of eco-innovation on business performance. In particular, we propose that the eco-innovation–performance relationship is contingent on environmental orientation and resources commitment. The analysis of 83 green-oriented SMEs in New Zealand suggests that eco-innovation has a positive effect on business performance. More interestingly, the findings show although environmental orientation does not directly influence business performance, it enhances the positive effect of eco-innovation on business performance. The results further suggest that green-oriented firms will reap more performance benefit of eco-innovation when they commit more organizational resources.     

Longitudinal effects of job insecurity on employee outcomes: The moderating role of emotional intelligence and the leader-member exchange

The longitudinal study reported herein examines the buffering effects of individual and social resources (emotional intelligence and the leader-member exchange relationship) on the relationships between job insecurity and employee reactions (somatic complaints and organizational commitment) and the relationships between employee reactions over time. The results of this study, which was based on data drawn from 157 nurses employed by three hospitals in China, indicate that emotional intelligence moderates the relationship between job insecurity and somatic complaints at both Time 1 (T1) and Time 2 (T2) and that the leader-member exchange relationship (LMX) buffers the effects of somatic complaints at T1 on organizational commitment at T2. Overall, the findings reveal that the ability of employees to deal with their emotions and their relationships with their supervisors is an important resource that serves to protect employee outcomes when job security is uncertain.     

The effects of perceived corporate brand personality on individuals' exploration and exploitation orientations: the moderating role of self-brand connection

Our knowledge is limited regarding the psychological antecedents of individuals' exploration and exploitation in general and regarding the identity-related antecedents in particular. The corporate brand of the organisation we work for is an important element of our collective identity, and the way we perceive the corporate brand personality of our organisation affects how we define ourselves. In this paper, using data from 417 individuals working in sales-related jobs and taking the behavioural strategy perspective, we examine the effects of perceived corporate brand personality on the individuals' identities and, therefore, strategic tendencies. More specifically, we find that the responsibility and activity dimensions of the corporate brand make the corresponding aspects of employees' identities more salient and affect their orientations towards exploration and exploitation. We also investigate the moderator role of the self-brand connection. This paper has contributions and implications, especially for the literature on exploration–exploitation at the individual level.     

The impact of culture on the relationship between governance and opportunism in outsourcing relationships

To address concerns of opportunism, outsourcing firms are encouraged to deploy contractual and relational governance. The individual and collective effects of these mechanisms have been previously examined but not in specific contexts. This study examines the effects of contractual and relational governance on provider opportunism, incorporating the moderating influence of a “shift parameter”—national culture. Our results reveal that contractual governance is more effective in individualistic and low uncertainty avoidance cultures. Relational governance is more effective in collectivist and high uncertainty avoidance societies. The individualism–collectivism dimension also moderates the joint effect of these mechanisms. While the mechanisms are generally complementary in mitigating opportunism, a singular focus on either contractual or relational can be just as effective under situations of high individualism and collectivism, respectively. Copyright © 2014 John Wiley & Sons, Ltd.     

The dual effects of perceived unfairness on opportunism in channel relationships

Opportunism has long-term negative consequences for channel relationships. The extant research has traditionally focused on economic forces in studying opportunism. However, social exchange theory stresses the role of social forces in shaping opportunistic behavior. In this study, we integrate transaction cost economics and justice theory to theorize and examine the impact of ‘perceived unfairness’ on distributor opportunism. We uncover the ‘dual’ effects of perceived unfairness on opportunism, i.e., 1) directly enhancing opportunism and 2) aggravating (positively moderating) the effects of economic forces on opportunism. Matched data on 247 supplier-distributor dyads in India provide empirical support for our theoretical model and research hypotheses. We find differential effects of the three dimensions of perceived unfairness (distributive, procedural, and interactional) on opportunism. We discuss the implications of our findings for theory and practice and present avenues for future research.     

Enabling relationship structures and relationship performance improvement: The moderating role of relational capital

Based on data from 248 asymmetric subcontractor–customer relationships in Finland, this study analyzes the direct impact of relationship structures, relational capital, and the subcontractor's relationship-specific investments on the improvement of operational relationship performance. In addition, the study investigates the moderating role of relational capital on the links between relationship structures, relationship-specific investments, and relationship performance improvement. We found that both relational capital and relationship-specific investments directly affect the relationship performance improvement, while relationship structures do not. However, relational capital positively moderates the link between relationship structures and relationship performance improvement by creating enabling structures. Thus, our findings contribute to the existing literature and discussion on enabling organizational and relationship structures by demonstrating how relational capital changes the role and impact of relationship structures.     

The impact of internationalization on performance and innovation: The moderating effects of ownership concentration

Researchers in international business have long been interested in understanding the impact of internationalization on performance and innovation. However, prior studies of this research stream offer mixed results. This study contributes to this research stream by employing agency theory to investigate how ownership concentration affects the performance and innovation implications of internationalization. Specifically, we examine two primary effects of ownership concentration: the incentive alignment effect, proxied by the controlling shareholder??s cash flow rights, and the entrenchment effect, proxied by the divergence between control rights and cash flow rights of the controlling shareholder. Based on a sample of Taiwan??s publicly listed firms, we find that the incentive alignment effect moderates the relation between internationalization and performance and innovation positively and the entrenchment effect moderates the relation negatively. These findings shed light on the mixed results of the literature. In addition, most countries outside the United States and the United Kingdom have high ownership concentration; therefore, our results may be generalizable to other settings, providing insight into the role of corporate governance in internationalization.     

The moderating effect of environmental dynamism on the ownership and performance relationship

Agency theory posits a positive relationship between insider ownership and organizational performance. Past empirical studies examining this issue have not firmly established this relationship. The current study postulates and tests the moderating effect of environmental dynamism on the insider ownership and performance nexus. Implications and future research directions are considered. © 1998 John Wiley & Sons, Ltd.     

Corporate reputation and customer behavioral intentions: The roles of trust, identification and commitment

How does corporate reputation influence customer behavioral intentions? This article proposes a model with customer trust, customer identification and customer commitment as the key intervening factors between corporate reputation and customer purchase intention and willingness to pay a price premium. We test the model by using data from 351 customers of three Chinese B2B service firms. Results indicate that corporate reputation has positive influence on both customer trust and customer identification. Customer commitment mediates the relationships between the two relational constructs (customer trust and customer identification) and behavioral intentions. Customer identification and customer commitment relate closely, but they are distinct constructs in the B2B setting.     

The role of contextual factors in relationship commitment of buyers to foreign suppliers: A survey of Korean importers

Businesses engaged in the importing of different products and services encounter suppliers with wide ranging backgrounds in terms of their size, cultural experiences, and duration of relationship. In this study, we investigate the effects of such contextual variables on the importers' relationship commitment to their foreign supplier. The hypotheses are tested using data collected from 144 Korean importers. Results indicate that both cultural similarity and type of product (consumer vs. industrial) do not impact the Korean importers' relationship commitment. However, their interaction is significant; cultural similarity matters for consumer products but not for industrial products. It is found that Korean importers tend to be more committed to larger suppliers and to those exporters with whom they have been having longer relationships. Implications for managers, limitations and suggestions for future research are provided.     

Niche and performance: the moderating role of network embeddedness

What is the relationship between niche and performance? We identify two types of niche positions—product niche and process niche—defined by the extent to which a firm offers distinctive products and has distinctive operational processes, respectively. We argue that the effect of each niche on firm performance is contingent upon network embeddedness—the extent to which a firm is involved in a network of interconnected inter‐firm relationships. Using data covering the period 1995–98 pertaining to venture capital firms and their holdings in initial public offerings (IPOs), we show that both product niche and process niche interact with network embeddedness to determine firm performance. Our findings suggest that the extent to which a firm offers distinctive products or processes will be more positively associated with firm performance when network embeddedness is high. Copyright © 2004 John Wiley & Sons, Ltd.     

Behind organizational slack and firm performance in China: The moderating roles of ownership and competitive intensity

Extensive studies of the organizational slack–performance relationship offer mixed findings in developed economies while little research attends to transition economies. Replicating and extending earlier work by Tan and Peng (2003), this study examines the relationship between organizational slack and firm performance in China and focuses on the moderating effects of firm ownership and competitive intensity. Empirical findings based on longitudinal data from 60,945 firms during 1998–2002 suggest that the impact of organizational slack on performance is stronger for private enterprises than for SOEs and foreign-invested enterprises. Furthermore, industry competitive intensity positively moderates the effect of organizational slack on performance. In a three-way interaction effect, the moderating effect of competitive intensity on the organizational slack–performance relationship is weaker in SOEs than in private enterprises and foreign invested enterprises.