Transaction costs as determinants of opportunism in integrated and independent sales forces

This study is an empirical test of the transaction cost determinants of opportunism by salespeople who sell electronic components in 169 U.S. sales districts. Opportunism by salespeople, as reported by their supervisors, is modeled as a function of (i) whether the salesperson is an employee or a manufacturers' representative; (ii) characteristics of the sales environment central to transaction cost analysis. The results generally support the transaction cost framework. They indicate that an especially powerful way to combat opportunism is to induce salespeople to perceive high goal congruence, i.e., that what benefits the company benefits them.