Hostname: page-component-586b7cd67f-t8hqh Total loading time: 0 Render date: 2024-11-22T06:55:34.315Z Has data issue: false hasContentIssue false

Opportunistic Behaviour by International Channel Intermediaries

Published online by Cambridge University Press:  18 September 2015

Amal R Karunaratna
Affiliation:
School of Commerce, University of Adelaide, Adelaide, SA 5005, Australia
Lester W Johnson
Affiliation:
Monash Mt Eliza Business School, PO Box 2224, Caulfield Junction VIC 3161, Australia

Abstract

The relationship between exporters and independent foreign channel intermediaries (FCIs) is complex. The present paper analyses and discusses the potential types of opportunistic behaviour that might be engaged in by foreign agents or distributors (FCIs) using an agency theory approach. A classification framework of opportunistic behaviour is developed and a detailed qualitative examination of the content of five agency-distributor agreements between Australian exporters and their FCIs. A five-category classification scheme for opportunistic behaviour was found that included (1) product, (2) price, (3) information, (4) logistical, and (5) legal opportunism. The implications of each type of opportunism for an exporter are discussed using examples obtained from ways to control opportunistic behaviour are discussed.

Type
Research Article
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2000

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Anderson, E and Coughlan, AT (1987) ‘International Market and Expansion via Independent or Integrated Channels of Distribution”, Journal of Marketing, 51, (01), 7181CrossRefGoogle Scholar
Bello, DC and Gilliland, DI (1997) “The Effect of Output Controls, Process Controls, and Flexibility on Export Channel Performance”, Journal of Marketing, 61, (01), 2238CrossRefGoogle Scholar
Bergen, MS, Dutta, S, Walker, OC Jr (1992) “Agency Relationships in Marketing: A Review of the Implications and Applications of Agency and Related Theories”, Journal of Marketing, 56, (3 07), 124CrossRefGoogle Scholar
Cavusgil, ST (1984) “Differences Among Exporting Firms Based on Their Degree of Internationalization”, Journal of Business Studies, 12, 195208Google Scholar
Cunningham, MT and Spigel, RI (1971) “A Study in Successful Exporting”, British Journal of Marketing, 5, (Spring), 212Google Scholar
Mortanges, de, Pahud, C and, Vossen, J (1999) “Mechanisms to Control the Marketing Activities of Foreign Distributors”, International Business Review, 8, (1), 7598CrossRefGoogle Scholar
Eisenhardt, KM (1989) “Agency Theory: An Assessment and Review”, Academy of Management Review, 14, (1), 5774CrossRefGoogle Scholar
Fontana, A. and Frey, H.J (1994) Interviewing, In Handbook of Qualitative Research (Eds, Denzin, N. K. and Lincoln, Y. S.), Thousand Oaks: Sage, 361376Google Scholar
Gatignon, H and Anderson, E (1988). “The Multinational Corporation's Degree of Control Over Foreign Subsidiaries: An Empirical Test of A Transaction Cost Explanation”, Journal of Law, Economics and Organization, 4, (Fall), 305336Google Scholar
Ghymn, K, Srinil, B and Johnson, P (1993) “Thailand Import Managers' Purchasing Behavior”, Journal of Asian Business, 9, (1), 111Google Scholar
Giberga, OM (1981) Laws Restrain Agency Agreement Termination. In Foreign Business Practices, 8695. Washington D.C.: Department of CommerceGoogle Scholar
Gundlach, GT, Achrol, RS and Mentzer, JT (1995) “The Structure of Commitment in Exchange”, Journal of Marketing, 59, (01), 7892CrossRefGoogle Scholar
Jensen, MC and Meckling, WH (1976) “Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure”, Journal of Financial Economics, 3, 305360CrossRefGoogle Scholar
Kaikati, J (1976) “The Marketing Environment in Saudi Arabia”, Akron Business and Economic Review, 7, 513Google Scholar
Langford, R (1996) “Net Benefit for Food Technology”, Business Review Weekly, (6 May), 61Google Scholar
Neuman, WL (2000) Social Research Methods: Quantitative and Qualitative Approaches, Needham Flights, MA: Allyn and Bacon.Google Scholar
Miles, GL (1994) Unmasking Japan's Distributors, International Business, (04), 3841Google Scholar
Muris, TJ (1981) “Opportunistic Behavior and the Law of Contract”, Minnesota Law Review, 65, 521–90Google Scholar
Ouchi, W (1979) “A Conceptual Framework for the Design of Organizational Control Mechanisms”, Management Science, 25, (9), 833–48CrossRefGoogle Scholar
Root, FR (1987) Foreign Market Entry Strategies. New York: AMA-COMGoogle Scholar
Rosenbloom, B (1978) “Motivating Independent Channel Members”, Industrial Marketing Management, 7, 275281CrossRefGoogle Scholar
Rosson, PJ (1984) Success Factors in Manufacturer-Overseas Distributor Relationships in International Marketing. In International Marketing Management, 91107. New York: PraegerGoogle Scholar
Schuster, CP, Keith, J (1993) “Factors that Effect the Sales Force Choice Decision in International Market Entry Strategies”, Journal of Global Marketing, 7, (2), 2749CrossRefGoogle Scholar
Shell, GR (1991) “Opportunism and Trust in the Negotiation of Commercial Contracts”, Vanderbilt Law Review, 44, (2), 221282Google Scholar
Williamson, OE (1975) Markets and Hierarchies, Analysis and Antitrust Implications. New York: The Free PressGoogle Scholar
Williamson, OE (1979) “The Transaction-Cost Economics: The Governance of Contractual Relations”, The Journal of Law and Econmics, 22, (10), 233262CrossRefGoogle Scholar
Williamson, OE (1985) The Economic Institutions of Capitalism. New York: The Free PressGoogle Scholar