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Keeping opportunism in business in check
Author: Corporate Communication / Korporatiewe Kommunikasie [Alec Basson]
Published: 15/06/2018

Opportunistic behaviour in business reduces trust, commitment, cooperation, relational ties and knowledge sharing, and also increases conflict and transaction cost.

This was one of the viewpoints of Prof Gert Human from the Department of Business Management in the Faculty of Economic and Management Sciences (EMS) at Stellenbosch University on Thursday (14 June 2018). He delivered his inaugural lecture on the topic The dark side of business interdependence and the collaboration-opportunism paradox.

Human said opportunistic behaviour  ̶  the deliberate seeking of self-interest  ̶  in business relationships is a key consequence of a negative (dark) unhealthy business relationship. “Dependence, asymmetry, uncertainty, conflict and power drive opportunistic behaviour in interdependent business relationships."Human.jpg

“Competitive intensity in the industry, market turbulence and organisational culture are contextual influencers of dark opportunism."

According to Human, the dark side of interdependence is not new.

“However, today the exponential growth in the sophistication and complexity of our business relationships, networks and ecosystems demands a better understanding of this phenomenon."

He said managers who understand this proactively mobilise resources to produce successful outcomes.

“Firms can employ bonding, bridging and linking types of social capital to moderate the effect of dark side of opportunistic behaviour."

Human said attention should be given to the importance of the collaboration-opportunism paradox in business relationships.

“The collaboration-opportunism paradox is here to stay. In a world where interdependence is a defining characteristic of business interaction, firms and individuals will continue to collaborate and forge business relationships to unlock new value."

“Therefore collaboration is not discouraged. In fact it is promoted, but needs to be accompanied by a clearer picture of the risks associated with the dark side of interdependence."

Human said as long as we have business collaboration the possibility of opportunistic behaviour will remain.

“It would be naïve to think that opportunistic behaviour can be completely governed by more sophisticated legal and other structural apparatus that firms, governments and individuals can reasonable design and implement."

Human said because opportunism in business relationships is alleged to always be present to some degree, ridding the business environment of it is near impossible and may even not be desirable.

“However, understanding its bright and dark side should, in theory at least, facilitate its management," he adds.

  • Main photo: Pixabay
  • Photo 1: Proff Gert Human (middle), Eugene Cloete, Vice-Rector: Research, Innovation and Postgraduate Studies, and Ingrid Woolard, Dean of EMS, at the inaugural lecture. Photographer: Anton Jordaan.