Goal Interdependence and Managing Opportunism in Supply Chain Partnerships in China

Abstract

The possibility of opportunistic behavior where partners pursue their self-interests with guile threatens relationships, disrupts work accomplishment, and frustrates future collaboration in the supply chain. This study hypothesizes that opportunism is not just the result of people’s pursuit of self-interests but depends on how they consider their self-interests are related to each other. When partners believe that their goals are competitively or independently rather than cooperatively related, they are more likely to pursue their self-interests opportunistically. Data were developed from 86 face-to-face interviews in Beijing, Nanchang, and Guangzhou, China, from representatives who described specific incidents of supply chain collaboration with their partners. Structural equation modeling results supported the model that competitive and independent goals but not cooperative ones induced opportunism that frustrated relationships, work productivity, confidence in future collaboration, and innovation in the supply chain.