The Impact of Trust on Opportunism Across Different Stages of Buyer-Supplier Relationships: A Process Perspective

Author(s):

  • Thoa Xuan Thi Pham (FPT University, Hanoi, Vietnam)
  • Nguyen Ngoc Anh (VNU International School, Vietnam National University Hanoi, Hanoi, Vietnam)
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Abstract:
Opportunism poses a significant challenge in business-to-business exchange relationships, particularly when companies aim for sustainable relationships. While trust is known to influence opportunism, its role across different stages of buyer-supplier relationships remains unclear in the existing literature. This study empirically investigates (1) the occurrence of opportunism before and after formal contract signing, specifically ex-ante and ex-post opportunism, and (2) the relational mechanisms for mitigating these types of opportunism. This study draws on transaction cost economics, contingency theory, and a process view of trust to explain the mechanism of how, when, and why trust influences opportunism throughout the different stages of a buyer-supplier relationship. An inductive theory-building approach through exploratory interviews methods was employed to address these theoretical issues. Data were collected through 25 semi-structured interviews conducted from April 2020 to November 2021 in both Japan and Vietnam. Our findings reveal the evolution of trust across different stages of buyer-supplier relationships: (1) in the initial stage, trust is formed by empirical evidence and relational assessment; (2) in the mature stage, trust is sustained by emotional connections and personal experiences. This dynamic interplay between trust and opportunism creates a powerful mechanism for mitigating opportunistic behavior. By understanding this process, managers can foster trust to safeguard against opportunism and build more collaborative and sustainable supplier relationships.
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@article{thoaxuanthipham-2024-1660,
  title={The Impact of Trust on Opportunism Across Different Stages of Buyer-Supplier Relationships: A Process Perspective},
  author={Thoa Xuan Thi  Pham and Nguyen Ngoc  Anh},
  journal={Operations and Supply Chain Management: An International Journal},
  year={2024},
  volume={17},
  number={4},
  pages={367--383},
  doi={10.31387/oscm0590448}
}
Thoa Xuan Thi  Pham, Nguyen Ngoc  Anh (2024). The Impact of Trust on Opportunism Across Different Stages of Buyer-Supplier Relationships: A Process Perspective. Operations and Supply Chain Management: An International Journal, 17(4), 367-383. https://doi.org/10.31387/oscm0590448