When Does a Supplier Tolerate Retailer Opportunism? Governance Value and Transaction Cost Perspectives

摘要

One stream of research on the interfirm governance suggests tolerance as a realistic alternative for addressing the channel partner's opportunistic behavior. According to the advocates of tolerance, a firm can garner tangible benefits from channel partners such as additional market segmentation and extended market coverage despite its channel partner's opportunistic behavior. Additionally, tolerating opportunistic behavior of the partner firm can promote intangible benefits such as relational stability with opportunistic but competent partners. However, tolerance may also lead to more opportunistic behavior of channel partners and therefore result in pernicious costs to a supplier.