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Abstract

This study draws on the transaction cost theory (TCA), relational contracting theory (RCT) and resource dependence theory (RDT). The author investigates the impact of interpersonal and inter-firm trust, prior relationship duration, and asymmetric buyer dependence on supplier opportunism in the tour operator-accommodation establishment relationship. Data analysed is from a survey involving 81 tour operators in Tanzania ' s tourism industry. The data corroborates predictions of RCT, TCA and RDT. Specifically, trust dissipates supplier opportunism. Moreover, the effect of asymmetric buyer dependence on supplier opportunism moves in a non-monotonic fashion over the range of relationship duration. The non-monotonic movement indicates that, buyer dependence exacerbates supplier opportunism when inter-firm relationship is immature. However, such potency wanes when the relationship duration takes effect. The paper also elucidates on implications for theory and practice in buyer-seller relationships.

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