Opportunism? It is All Relative! Antecedents and Consequences of Subjective Opportunism Judgments

Abstract

I argue that when formal contracts are not present to anchor the definition of what constitutes opportunistic behaviors during an interfirm exchange relationship (e.g. when the exchange is governed through relational devices), ex-post opportunism takes a subjective nature such that parties frequently find themselves in a position to interpret unexpected exchange behaviors by their partners and make subjective opportunism judgments. I then develop hypotheses on the factors that shape those judgments and on the consequences of those judgments. Results from the first experiment show that opportunism judgments are indeed subjectively formed and they are shaped by the nature of the behavior, perceived strength of the relationship, nature of the causal account provided for the action, and personality traits of the actor making the judgment. Furthermore, opportunism judgments influence important outcomes such as intentions for repeat exchange and intentions to use relational governance devices in the future, poi...