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Opportunism

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The Palgrave Encyclopedia of Strategic Management

Abstract

Opportunism is self-interest-seeking with guile and is a troublesome source of behavioural uncertainty (e.g. economic hold-up, adverse selection and moral hazard problems). An important lesson for the purpose of studying economic organization is that transactions, which are subject to ex post opportunism, will benefit if appropriate economic safeguards can be derived ex ante. Mutual sunk cost credible commitments facilitate ongoing relationships and adaptation. The upshot is that the study of (corporate) governance is concerned with the mitigation of all forms of contractual opportunism.

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Author information

Authors and Affiliations

  1. Department of Business Administration, College of Business, University of Illinois at Urbana-Champaign, 140C Wohlers Hall, MC-706, 1206 S. Sixth St., Champaign, IL, 61820, USA

    Joseph T. Mahoney

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  1. Joseph T. Mahoney
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Correspondence to Joseph T. Mahoney .

Editor information

Editors and Affiliations

  1. Stanford University , Stanford, California, USA

    Mie Augier

  2. Tusher Ctr Intellectual Capital, University of California Tusher Ctr Intellectual Capital, Berkeley, California, USA

    David J. Teece

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© 2016 The Author(s)

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Mahoney, J.T. (2016). Opportunism. In: Augier, M., Teece, D. (eds) The Palgrave Encyclopedia of Strategic Management. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-94848-2_588-1

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  • DOI: https://doi.org/10.1057/978-1-349-94848-2_588-1

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  • Publisher Name: Palgrave Macmillan, London

  • Online ISBN: 978-1-349-94848-2

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