How prior ties influence organizational behaviors and performance outcomes: A meta-analysis

Abstract

Repeated transactions between organizations significantly affect organizational behavior and performance. However, the literature on whether such prior ties are beneficial remains inconsistent. Conceptualizing organizational behaviors as cooperative and opportunistic behaviors and performance outcomes as relationship performance and satisfaction, this study meta-analyzed 371 relevant studies involving 101,053 interorganizational relationships. The moderating effects of institutional environments and mediating effects of contractual and relational governance were examined. Results showed that prior ties can generally enhance relationship performance and satisfaction, increase cooperative behaviors, and inhibit opportunistic behaviors. These relationships are moderated by institutional environments, including individualism/collectivism, uncertainty avoidance, and formal institutions. Contract design and relational governance partially mediate these relationships, whereas contract application has no mediating role. This study enriches the research on prior ties in business management and offers guidance for business managers in contingently selecting partners and improving governance mechanisms.