Containing Opportunism in Buyer-Seller Relationships: A Case of Tour Operators and Accommodation Establishments in the Tanzania’s Tourism Industry

Abstract

This study draws on the transaction cost theory (TCA), relational contracting theory (RCT) and resource dependence theory (RDT). The author investigates the impact of interpersonal and inter-firm trust, prior relationship duration, and asymmetric buyer dependence on supplier opportunism in the tour operator-accommodation establishment relationship. Data analysed is from a survey involving 81 tour operators in Tanzania’s tourism industry. The data corroborates predictions of RCT, TCA and RDT. Specifically, trust dissipates supplier opportunism. Moreover, the effect of asymmetric buyer dependence on supplier opportunism moves in a non-monotonic fashion over the range of relationship duration. The non-monotonic movement indicates that, buyer dependence exacerbates supplier opportunism when inter-firm relationship is immature. However, such potency wanes when the relationship duration takes effect. The paper also elucidates on implications for theory and practice in buyer-seller relationships.