I need to be your only friend: the effect of salesperson network centrality on opportunistic behavior

Abstract

Transaction cost economics can be used to detect opportunistic behavior by one or more actors within a sales network. Using a sample of firms in the medical industry, where the role of salespeople is important, this study examines network centrality as a determinant of a salesperson’s opportunistic behavior in intrafirm relationships. The results indicate that opportunistic behavior is affected differently depending on a salesperson’s relational and positional centralities. While relational centrality decreases opportunistic behavior by providing motivation to protect one’s reputation, positional centrality negatively moderates the effect of relational centrality on opportunistic behavior. However, with a high relational centrality, a salesperson is less likely to be opportunistic when she or he is low in positional centrality than when her or his positional centrality is high.