Abstract:On the basis of transaction cost theory,this study divides institutional distance into formal and informal institutional distance, then uses the structural equation model based on partial least squares (PLS) to analyze the effects of different institutional distance dimensions on opportunistic behavior, and the role of organizational identity in this process. The results shows that: first, formal institutional distance has negative influence on opportunistic behavior; second, informal institutional distance has positive influence on opportunistic behavior; last, organizational identity acts as mediator between institutional distance and opportunism.