Trust asymmetry and changes in supplier opportunism: An institutional contingency view

Abstract

<p>Despite the importance of trust and the dyadic nature of exchange relationships, research on how differing trust perceptions between partners affect transactions is insufficient. Drawing on relational exchange theory, this study explores the effects of buyer trust asymmetry and supplier trust asymmetry on changes in supplier opportunism over time, and further examines the moderating roles of legal support and regulatory uncertainty. Empirical results from 229 buyer–supplier dyads in China reveal that when buyer trust surpasses supplier trust, trust asymmetry leads to increased supplier opportunism over time; yet when the supplier’s trust exceeds that of the buyer, trust asymmetry results in decreased supplier opportunism. Moreover, legal support weakens the effects of buyer and supplier trust asymmetry, and regulatory uncertainty magnifies the influence of buyer trust asymmetry. Our findings shed light on the complexity of interfirm trust and the dark side of business-to-business relationships, offering valuable insights for relationship marketing research.<br></p>