Purpose In light of increasingly tight buyer–supplier relationships, opportunism is a problem of increasing relevance. So far, opportunism has mainly been researched as a detrimental action by suppliers and interpreted with an institutional economics lens. Recent conceptual work, however, has argued more for a behavioral approach to operations management, suggesting benefits of taking a social capital perspective on opportunism. Based on a large empirical sample of buyer–supplier relations, this paper aims to provide an empirical study using social capital as theoretical lens. Further, it analyzes both supplier and buyer opportunism at the same time. Design/methodology/approach The paper, through following a quantitative approach, considers the interacting dyad of buyer and supplier opportunism, its antecedents as well as its performance implications. Findings Findings did not support the expectation that supplier opportunism will be countered by buyer opportunism in a single relationship. However, social capital in the form of cognitive and relational capital has been found as a good predictor of opportunism. This study proposes new measures for structural capital. Further the study confirms the detrimental effect of opportunism on performance of the buyer–supplier relationship, highlighting the mediating role of innovation as building block of relational competitive advantage. Research limitations/implications Previous studies on opportunism in buyer–supplier relations were mostly transaction cost-oriented, thus neglecting the behavioral aspects of exchange processes. Introducing social capital theory revealed to be a rewarding amplification of the perspective. Next, most research up till now was focused on explaining supplier opportunism only. This study contributes by analyzing both sides of the interacting dyad. Finally, this research closes a research gap by not only explaining the occurrence of opportunism but by also testing its performance outcomes. Accordingly, this study contributes to the opportunism literature, social capital theory development and to the management of buyer–supplier relations. Practical implications Building up cognitive and relational capital is likely to be a tool to reduce the danger of opportunism – both with the partner firm, as well as inside the own organization. As such, firms need to make sure that both forms of social capital are present to a higher extent. If this is not the case, opportunistic actions on both buying and supplying side might occur which have damaging impacts on the generation of innovation as well as the achievement of strategic advantages. Originality/value While previous studies have focused on explaining supplier opportunism, an analysis of both sides of the interacting dyad between buyer and supplier opportunism is missing. Not only does this research provides further insights with regard to the latter, but further considers the role of social capital as underlying factor explaining both buyer and supplier opportunism. Also, this research answers the call on more research about the relation between opportunism and performance, specifically focusing on innovation and strategic advantage generation.

With globalisation still on the rise firms precede building their global supply bases in order to defend or improve their position against domestic as well as international competitors. However, when focusing on low-cost countries this picture turns reverse. Caused by government policies as well as purchasing strategies employed, more and more firms decide to shift their focus from global to local sourcing. Some firms even go as far as establishing entirely local supply chains, a strategy also understood as deep localisation. Drawing on social capital theory, we examine the role that social capital pillars can play for the successful outcome of deep localisation projects. Here, we make use of the unique situation that deep localisation offers and focus on social capital in network relationships. Through applying case study methodology, we compare successful and non-successful cases, analysing data from an automotive OEM as well as 1st and 2nd tier suppliers. Results indicate that social capital can have a facilitating effect. The study extends literature on global sourcing and social capital theory and suggests important implications for research and practice.

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