Individualism, collectivism, and opportunism: A cultural perspective on transaction cost economics

Chao C. Chen, Mike W. Peng, Patrick A. Saparito

Research output: Contribution to journalArticlepeer-review

161 Scopus citations

Abstract

Researchers criticize the transaction cost economics (TCE) paradigm for over-generalizing the assumption of opportunism as human nature. We suggest that opportunistic propensity is affected by cultural prior conditioning of individualism-collectivism (I-C). Specifically, we propose that individualists have a higher opportunistic propensity in intra-group transactions, and collectivists in inter-group transactions. Our cultural specification of opportunism helps TCE to more effectively accomodate some criticisms and more realistically deal with problems of economic organization in today's global economy.

Original languageEnglish (US)
Pages (from-to)567-583
Number of pages17
JournalJournal of Management
Volume28
Issue number4
DOIs
StatePublished - Aug 2002

All Science Journal Classification (ASJC) codes

  • Finance
  • Strategy and Management

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