Supplier pro-relational opportunism: Antecedents and effects on cooperative buyer-supplier relationships

Abstract

ABSTRACT Purpose Pro-relational opportunism (PRO) is of growing concern in today’s business environment. The premise of this study is to investigate the issues that remain relatively underexplored in previous research – antecedents of supplier PRO and how supplier PRO affects the trust and commitment of brand firms. Methodology Three scenario-based experiments were applied to test the hypotheses. In Studies 1a and 1b, we used a 1 × 2 (Study 1a – inter-organizational identification: low versus high; Study 1b – supplier dependence: low versus high) between-subjects design. Participants were asked to evaluate their ethical philosophies after reading the scenarios. We ran a regression analysis to test for the main and interactive effects of inter-organizational identification, supplier dependence, and ethical philosophy on supplier PRO. Study 2 used a 1 × 2 (supplier PRO: PRO acting versus non-PRO acting) between-subjects design. The bootstrapping method using PROCESS was applied to run a mediation analysis. Findings This study finds that inter-organizational identification, supplier dependence, and managers’ ethical philosophy (utilitarianism and relativism) may increase suppliers’ PRO behavior. Utilitarianism and relativism positively moderate the effects of inter-organizational identification and supplier dependence on supplier PRO. Supplier PRO has both a direct and negative impact on the brand firm’s commitment and an indirect effect mediated by trust. Research implications This study provides insight into drivers and outcomes of supplier PRO based on the relationships with brand firms. Influences of inter-organizational determinants are dependent on individual factors. This research extends the supply chain opportunism literature beyond the typically dyadic perspective. Practical implications Brand firms should be cautioned that strong inter-organizational identification may promote supplier PRO. In addition, brand firms should encourage dependent suppliers to find ethical ways to promote alternative attractiveness. In seeking to avoid damage to the trust and commitment of brand firms, suppliers need to establish systems and norms to help managers develop correct ethical philosophies and understand the harm of PRO behavior. Originality/value/contribution This research may be the first to examine the antecedents of supplier PRO and its boundary conditions in multi-level settings (i.e. inter-organizational and individual levels). Moreover, this study deepens our understanding of opportunism by further developing the consequences of PRO.