Subject. The article discusses the issues of reducing transaction costs with respect to the opportunistic behavior of suppliers. Objectives. The study reveals forms and constituents of opportunism, analyzes possible model for the opportunistic behavior of supplier, illustrating the practical example. We suggest how transaction costs of manufacturing enterprises should be reduced. Methods. The methodological framework comprises general methods of analysis, synthesis, deduction, induction. We used articles and monographs of the Russian and foreign scholars, and data of manufacturing enterprises in machine building and metallurgy, which authors gained as part of their professional career. Results. Reviewing proceedings of foreign and national researchers on transaction costs with respect to the opportunistic behavior of supplier, we analyzed forms and constituents of opportunism. Models of suppliers’ opportunistic behavior are studied in terms of transaction costs incurred by the manufacturing enterprise, which performs orders for their suppliers. We suggest what should be done to prevent opportunism. We also revealed key strategies for responding to the opportunistic behavior of suppliers, which pursue lower transaction costs of manufacturing enterprises. Conclusions and Relevance. Preventing opportunism, manufacturing enterprises make their relations with suppliers more reliable and effective, thus reducing transaction costs in procurement. It is noteworthy that opportunism prevention activities should be undertaken if their cost is lower than the losses due to opportunism.
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