When Do Organizations Behave Opportunistically? The Effects Of Collectivistic Organizational Culture

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Sungmin Ryu
Woojung Jang
Jukyung Lee
Jong Eun Lee

Keywords

Opportunism, Transaction-Specific Investment, Collectivistic Organizational Culture

Abstract

Transaction cost theory posits that firms behave opportunistically if they are given the chance. In reality, however, some firms act opportunistically, whereas others do not. This raises the question of under what circumstances firms tend to behave opportunistically. Previous studies provided no clear explanation of when opportunism occurs and what its antecedents are. This study identifies the circumstances under which firms behave opportunistically by empirically testing the following two causal factors in opportunistic behaviors: transaction-specific investment (TSI) and collectivistic organizational culture. The survey results indicate that a firms TSI is an important factor influencing opportunistic behaviors and that collectivism moderates the relationship between TSI and opportunism.

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