Opportunism in Chinese Interfirm Alliances: Effects of Asymmetric Dependence and Guanxi Governance

Abstract

In alliance studies, opportunism is generally considered a critical obstacle to interfirm cooperation, as it hampers interfirm confidence, impedes alliance evolution, and increases the probability of alliance failure. This study extends the prior opportunism studies by hypothesizing that actor opportunism in Chinese business will be largely affected by two sets of interfirm relationships: partners’ asymmetric dependence and guanxi governance. Data from 109 alliances undertaken by Taiwanese information and electronic firms supported the research hypotheses.