Determinants of opportunism in Uganda’s manufacturing sector:a comparison of two sectors

Abstract

Purpose The purpose of this paper is to propose a conceptual model investigating the impact of three constructs, environmental uncertainty, power asymmetry and information sharing on opportunism engagement in exchange relationships. Design/methodology/approach Data were collected from procurement or sales managers of 99 manufacturing firms in Kampala, Uganda’s capital using a cross-sectional survey. Hypotheses were tested in both the agricultural and non-agricultural manufacturing sectors using multiple regression runs in the SPSS software. Findings Environmental uncertainty increases opportunism in the agricultural sector whilst power asymmetry increases opportunism in the non-agricultural sector. Across both sectors, information sharing does not have a significant impact on opportunism. Originality/value This paper contributes to a deeper understanding of opportunism in a developing country context by highlighting the contextual factors within the agricultural and non-agricultural manufacturing sectors that influence opportunism engagement under conditions of environmental uncertainty, power asymmetry and information sharing. This paper presents implications for practice and policy to minimise opportunism with the goal of enhancing the participation of Ugandan manufacturing firms in global supply chains.