Understanding how opportunism and resource capability affect performance in exporter–LSP outsourcing relationships

Abstract

Logistics service providers (LSPs) play strategic roles in contemporary global supply chains. The resources and capabilities at the disposal of LSPs make them easily adaptable to the needs and exigencies of their clients. Though opportunism is a threat to business relationships, the LSP–client relationship studied here shows opportunism can be both a threat and an opportunity in resource and capability utilisation. This paper finds opportunism to be not only a threat but also an incentive in enhancing LSPs resource capability. Opportunism has a double-edged or dual effect demonstrated by the curvilinear relationship between opportunism and resource capability in relation to performance. The paper highlights implications for theory and management and future research directions.